Put your money to work! That’s a direct order to nervous investors who are worried that the Meta Platforms (NASDAQ:META) share price has gone too high, too fast. Instead of waiting around for Meta Platforms stock to pull back, consider the company’s advantages as a social-media powerhouse and get in the winner’s circle with a long position.
There’s no denying that Meta Platforms has earned its status as a Magnificent Seven member. CEO Mark Zuckerberg promised a “year of efficiency,” and Meta Platforms over-delivered with outstanding 2023 financial results. So, stick around to discover what Meta Platforms is up to lately, and think about how many shares you’d like to buy today.
Meta Platforms Challenges TikTok With New Video Player
Let’s be perfectly honest. Meta Platforms is a social-media dominator with its Facebook, Instagram and WhatsApp platforms. However, Meta has to defend its market share against TikTok, which is quite popular among young people.
Yet, Zuckerberg and Meta Platforms aren’t known for backing down and giving up. Just recently, Meta unveiled a full-screen video player – not a device, but software that can run on smartphones.
This video player will allow users to watch and share video content while also enabling video recommendations on Facebook. Most notably, however, Meta Platforms’ new video player will, by default, showing videos in TikTok-style vertical mode.
Thus, instead of ignoring the TikTok phenomenon, Meta Platforms is leaning into it by embracing young users’ preferences. If they want vertical-mode videos, Meta’s giving it to them by default. It will be interesting to see if Meta’s new video player increases user engagement and helps the company compete successfully against TikTok.
Meta Platforms Stock Identified as a “Top Digital Advertising Pick”
Clearly, Meta Platforms is relentless in developing new concepts and products to meet consumers’ preferences. In addition, Meta is a strong revenue generator, especially when it comes to advertising revenue.
That’s the number-one reason investors should stay in the trade with META stock. It’s also a reason why Wedbush analyst Scott Devitt identified the stock as a “top digital advertising pick.”
Devitt raised his price target on Meta Platforms stock from $420 to $520 and reiterated his “outperform” rating on the shares. Furthermore, the Wedbush analyst is “encouraged by impressive results and guidance as the company continues to see healthy engagement trends and improving monetization.”
Meanwhile, Jefferies analysts see Meta Platforms’ market-share gains continuing to accelerate this year and envision Meta’s advertising revenue potentially growing by 20%. Per TheStreet, the Jefferies analysts also believe that Meta “could capture 50% of incremental industry advertising dollars in 2024.”
Consequently, the Jefferies analysts published a “buy” rating on META stock and lifted their share-price target from $550 to $585. That’s a reasonable target, considering Meta Platforms’ undeniable momentum in the digital-ad market.
You Can’t Win It Unless You’re In It
Putting your capital to work means investing in capital-rich, fast-growing businesses. Meta Platforms checks those boxes for sure. Besides, Meta and Zuckerberg are unafraid to take on TikTok and defend Meta Platforms’ market share.
So, what are you waiting for? Your cash will only lose its purchasing power over time, while Meta Platforms stock is bound to grow in value. Therefore, now’s the time to add a winning edge to your portfolio with a confident share position in Meta Platforms.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.