Meta Platforms Stock Climbed More Than 1% in Morning Trading

Tiger Newspress2021-12-28

Meta Platforms stock climbed more than 1% in morning trading as Facebook stock could get a big boost from surging Oculus sales,analyst said.

Meta's latest Oculus VR handset dubbed the Quest 2 appears to have been a hot gift this holiday season, underscoring one reason why shares of the social media giant remain a buy, says Jefferies analyst Brent Thill.

Based on new research by Thill on Tuesday, the Oculus app was the number one most downloaded app in the App store on Christmas Day. Oculus downloads and daily active users on Christmas Day surged 70% and 90%, respectively, from the prior year.

The gains are impressive in the sense the Quest 2 isn't cheap at nearly $400.

"We view this massive uptick in app usage as evidence that the improved slate of games and experiences is resonating with users and that Quest 2 sales are likely to surprise. Quest 2s were popular gifts in our households this Christmas with 'SuperHot' and 'Eleven Table Tennis' among our favorite games," Thill said.

Added Thill, "As teens spend an increasing amount of time on services like SNAP, TikTok, RBLX, and Fortnite it is becoming more challenging for FB to attract and retain younger users. We believe that Quest 2 could serve as an on-ramp for attracting these users, as they can more easily be introduced to FB's diverse offering of games, experiences, and social platforms. We also see Oculus' mainstream success as a potential catalyst for game developers to work more closely with FB.

Oculus was a hot seller this holiday season.

Thill — a long-time Meta bull — maintained a Buy rating on Meta with a price target of $420.

While Thill acknowledges headline risk to Meta's stock from privacy concerns, he contends valuation is too compelling to ignore in light of key fundamental drivers such as Oculus.

"Our most recent advertiser checks point to a healthy environment for digital ad spending. Additionally, recent Mastercard data indicates that online retail Holiday sales were up 11% year-over-year (and 61% vs. 2019), providing further evidence that holiday ad demand was likely robust. With the stock trading at just 20x FY23E earnings per share (vs. Nasdaq comparable 26x), we see plenty of opportunity for a higher stock over the next 12 months," Thill concluded.

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精彩评论

  • Uasbau
    2021-12-30
    Uasbau
    Good Infos update
  • YueShan
    2021-12-29
    YueShan
    Good⭐
  • LimLS
    2021-12-29
    LimLS
    Meta is one of the good company among tech that is still decently priced. Many other big tech like Apple and Microsoft had ran ahead and in the over bought region. Meta can be shortlisted for buying if there is any dip. DYODD
    • 56a3dd2f
      Agree. I'm already vested and waiting for bigger dips to add on to existing positions 😊👍
    • RosalindElinor
      Meta is a great company and the only large American technology company with a market value of less than $1 trillion.
    • maroketo
      I believe Meta's metaverse business will be successful because it has a huge user base. If another company can succeed, I believe it will be Tencent.
    • kiekie
      The biggest problem of Meta is that its performance will not be particularly good in the next few years, because it needs to invest heavily in metaverse business.
  • Hsc
    2021-12-29
    Hsc
    Great 
  • TeikLeong
    2021-12-29
    TeikLeong
    Like
  • jon1688
    2021-12-29
    jon1688
    Great ariticle, would you like to share it?
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