More Analysts Turning Bullish on Meta Platforms

After the recent actions that Meta Platforms (META) took to lower costs and increase its profitability, more analysts have jumped on the bull bandwagon for the stock.  As a result, shares of Meta Platforms have surged +140% from a seven-year low in November to an 11-month high today as confidence in the company has improved since it started cutting thousands of jobs amid falling sales.  The rally in the stock accelerated last month after it announced further job cuts and pledged to be more efficient.

More than 25 analysts have raised their price targets on Meta Platforms since the company announced its second round of layoffs last month.  According to data compiled by Bloomberg, analysts have also boosted their 2023 earnings per share (EPS) estimate for Meta Platforms by 15% over the past three months.  While the digital advertising business has slowed, it has at least stabilized, according to analysts.  ETF Action said, “The catalyst for Meta Platform’s recent rally is likely traced to both extensive cost-cutting measures and adjusting to the negative effects of Apple’s privacy changes which significantly hurt ad revenue.”