Multiple analysts upgraded their outlook for Meta stock in the first hours following the social media giant’s launch of Twitter competitor Threads, suggesting Meta could soon tack on another $150 billion in market valuation despite its buzzy new platform having no revenue prospects—yet.
CFRA analyst Angelo Zino upgraded his price target for Meta from $300 to $350 on Thursday thanks to the expectation the company “will find success penetrating” the text-based social media space.
That implies 18% upside from Meta’s current $296 share price, indicating Meta’s valuation could soar from $755 billion to over $900 billion.
KeyBanc Capital Markets analyst Justin Patterson upgraded his price target for Meta from $280 to $335 in a Wednesday note despite calling Threads an “immaterial contributor” to the company’s broader outlook.
Still, Patterson said Threads could bring in up to $6.7 billion in revenue should it sway a considerable amount of converts from Twitter; the more bullish Zino noted he does not forecast Meta’s Threads to generate any revenue until at least 2025.
Shares of Meta inched up nearly 1% in early trading, moving against broader market losses and are on their way to their highest close since last February.
“Meta timed the launch well given a slew of issues at Twitter since Musk’s takeover and appetite for many to have an alternative option,” Zino wrote. Some 10 million users signed up for Threads in its first seven hours of existence after launching Wednesday evening.
Meta was the second best-performing stock on the S&P 500 during 2023’s first half, gaining 138%, though it remains more than 20% below its 2021 peak. Driving that surge was growing advertising revenue amid cost-cutting measures, as well as optimism about monetization for Meta’s short-form video Reels platform.
$61 billion. That’s how much richer Meta CEO Mark Zuckerberg is Thursday than he was at the end of 2022. Zuckerberg is the seventh-richest man on earth, according to Forbes’ calculations, though his $105 billion fortune is about $140 billion less than that of Twitter owner Elon Musk, who is the wealthiest person on the planet.
Leading up to the launch of Threads, Musk and Zuckerberg entered into a public feud, with each of the middle-aged tech bros showing off their martial arts training ahead of a possible fight between the two. Asked about whether Zuckerberg’s uncharacteristic step into the spotlight impacted his view on Meta, Zino told Forbes that Musk and Zuckerberg’s “public beef…is a nice side-show” but it’s nothing to “make anything” of. Tesla, the electric vehicle maker helmed by Musk, dropped as much as 65% last year as Musk completed his controversial takeover of Twitter.
Zuckerberg Says Threads Crossed 10 Million Signups In First Seven Hours As Musk Rails Against Instagram (Forbes)
No Hashtags, No Chronological Timeline And Mobile Only: How Meta’s ‘Threads’ Differs From Twitter (Forbes)