Why Meta Platforms Shares Are Climbing Today

In the social media giantMeta Platforms （Nasdaq Resonancestock (market)(Code: META)I got it this morning.Jefferies)The company's shares are higher today after analysts were bullish. In addition, today's uptrend in the market also appears to be in Meta's favor after Fed chief Jerome Powell assured investors of a rate cut yesterday.

As a result, as of 11:22 a.m. EST, the stock had risen 3% to a new all-time high.

Meta's got a big fan.

In a note this morning, Jefferies raised its price target on Meta stock from $550 to $585, maintaining its Buy rating. What's more, the research firm said that after a new market share analysis, it believes Meta could capture an all-time high of 50% of incremental advertising volume in the industry in 2024.

The analyst predicts that its revenues will grow by 20%, driven in part by new generative artificial intelligence (AI) tools, compared to the digital advertising industry's overall growth rate of 9%. The analyst also expects Meta's market share to accelerate this year, and says that its market share could exceed that of Meta for the first time since 2015. AmazonThe

Meta continues to gain momentum

Meta's recent financial results show that the advertising business is growing rapidly, shaking off an earlier slump. During the first quarter, Meta's ad revenue grew by 24%, driven by increased ad volume on Reels from its competitor TikTok and a resumption of price per ad growth of 2%, indicating that demand for ads is recovering. Ad impressions also grew by 21% in the quarter, which is a strong signal for ad usage.

This social media stock has been performing well since the start of 2023, and if Jefferies is right, it's likely to continue to rise this year.

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Randi Zuckerberg, former Facebook Marketplace Director of Mass Development and Spokeswoman, and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool Board of Directors. John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's Board of Directors, and Jeremy Bowman serves on the boards of Amazon and Meta Platforms. The Motley Fool has a disclosure policy.

Why Meta Platforms Shares Are Up Today was originally published by The Motley Fool.