Meta stock and Amazon rise after analysts raise price targets

Meta stock rose Thursday after a team of Wall Street analysts raised price targets on the social media stock. Amazon (Amazon) also raised its target price, but ended the day lower.


A new report from Jefferies on Thursday reiterated a Buy rating Yuan (Mehta). Analyst Brent Thill raised Jefferies’ price target on Facebook’s parent company to 585 points from 550 points.Separately, Thills raises price target on Jefferies Amazon (Amazon) stock rose from 190 points to 225 points and reiterated a buy rating.

superior Today’s stock marketMeta shares rose nearly 1% to close at 510.92 points. Meanwhile, Amazon shares rose in early trading but fell back to close at 180.04 points, down 1.3%.

Meta Stock: “There are too many advantages to count”

Meta’s new price target incorporates the latest market share analysis from analysts at Jefferies, according to client reports.

Thill wrote that Meta has “countless advantages” over its competitors in the digital advertising market. Advertising drives nearly all of Meta’s revenue. The company has been investing in artificial intelligence tools to help drive more engagement and ad sales across its apps, including Facebook, Instagram, Reels, WhatsApp and Threads.

“We believe Meta’s decision to invest $27 billion in capital expenditures in fiscal 2023 has helped the company develop multiple advantages over strategic peers,” Thill wrote in a letter to clients.

Those strengths include a powerful AI-based recommendation engine for its Reels short-form video product, which drives people to spend more time on Facebook and Instagram. Additionally, Meta’s AI-powered Advantage+ tool for buying ads is driving “significant improvements in advertiser ROI,” the Jefferies report reads.

Yuan Jiang Reports first-quarter earnings April 24th. Meta shares are up 45% this year.

Amazon stock: Still ‘a lot to like’

Separately, Thiel and a team of Jefferies analysts issued positive comments about Amazon on Thursday after meeting with industry experts and former employees.

The report said Amazon has “aggressive opportunities” for ad-supported videos on its Prime streaming platform and “improving the cloud environment” for its Amazon Web Services business. However, the Jefferies analyst team added that its experts believe Amazon “needs to improve its AI offerings to remain competitive.”

Amazon has not yet set a release date for its first-quarter earnings. FactSet expects the report to be released later this month. Amazon shares have risen nearly 20% so far in 2024.

Amazon and Meta both appear on several IBD stock lists. Meta is on the list of technology leaders, IBD50, Market 20 and advanced IBD Leaderboard listAmazon, on the other hand, is IBD Technology Leader list.

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