Meta stock notched another gain Monday, with the Facebook parent company building on a recent winning streak to reach a new 52-week high. Wall Street analysts are positive about a new tie-up between Meta Platforms and Amazon.com.
On the stock market today, Meta stock closed up by a fraction at 329.19. With the positive close, Meta stock has gained for seven straight trading days. That marks the company's longest streak since January 2021, according to Dow Jones Market Data.
In intraday trading, Meta hit a 52-week high of 332.33 before giving back some of those gains.
Meta-Amazon Partnership
Meta is starting a new initiative with Amazon. A new feature will allow users to link their Facebook and Instagram accounts to their Amazon accounts.
Facebook and Instagram users will be able to purchase goods by clicking on promotions in their feeds. The partnership was first highlighted in a LinkedIn post Thursday by Maurice Rahmey, co-CEO of digital marketing agency Disruptive Digital.
Amazon confirmed the deal to CNBC.
Meta stock analysts liked the deal.
"Improved ad quality — better targeting, more product information, delivery times, etc. — and removing payment friction should lead to higher conversion for AMZN's ads on META," wrote a team of Morgan Stanley analysts led by Brian Nowak. "As such, we expect these ads to lead to faster META ad revenue growth and faster transaction growth for AMZN."
Competing e-commerce platforms could strike similar deals with Meta if the tie-up helps sales for Amazon, Nowak added.
Meanwhile, BofA Securities analyst Justin Post noted that the companies have not disclosed revenue sharing details. Short-term benefits from the deal could be limited, but the deal could be important to Meta for two reasons, he said.
First, "it will add more ad volumes from an important online retailer," Post wrote in a client note late Friday.
Second, "it will accelerate Meta's on-platform shopping capabilities, tapping into the large social commerce (total addressable market)."
Meta Stock Recovers From Post-Earnings Slide
Meta shares bottomed on Oct. 26, after the company counseled caution on its earnings call about ad revenue in the fourth quarter.
The stock fell despite a 168% year-over-year earnings increase and 23% sales gain in the third quarter.
But Meta stock has bounced back since then to advance about 15%.
Meta stock has gained just under 175% this year, the second-best performance in the S&P 500, behind only Nvidia .
And after the dip following its earnings report late last month, Meta stock recently overtook a former 326.20 buy point.
Further, Meta is on the IBD Leaderboard, Big Cap 20 and Tech Leaders lists.
Meta stock has a highest-possible Relative Strength Rating of 99, according to IBD Stock Checkup.
