JPMorgan sees Meta as ‘built for the long term.’
JPMorgan considers Meta one of its top picks among internet stocks for its scale, growth, and profitability.
“We believe Meta’s virtual ownership of the social graph, strong competitive moat, and focus on the user experience position it to become an enduring blue-chip company built for the long term,” analysts led by Doug Anmuth wrote last week.
The bank expects Meta advertising to continue outperforming, bolstered by AI investments and Instagram Reels revenue expansions. Cost discipline will continue on through 2024, even if investments start rising.
Still, the bank did note some room for concern after this quarter’s earnings, as Meta may need to find new catalysts for further expansion.
“META remains well-owned, but there is growing caution into earnings on almost-certain growth deceleration beyond 1Q due to tough comps & perception of lack of new drivers vs. ’23. We believe slower growth is well-anticipated, & likely taken into account in META’s undemanding multiple,” the bank wrote.
JPMorgan rates Meta at “Overweight” with a $535 price target.
