Key insights
- Citizens reiterates a Market Outperform rating on Meta Platforms (META), highlighting a partnership with Stripe for an enhanced checkout experience. Despite potential merchant pushback, Meta aims to capture valuable data and attribution from on-platform sales. The company's strategic shift towards subscription offerings across its services and for businesses/creators, coupled with positive earnings revisions and strong revenue growth, suggests a potentially bullish outlook for the stock and could influence other social media companies.
Investing.com - Citizens maintained a Market Outperform rating and $825.00 price target on Meta Platforms Inc. (NASDAQ:META) stock. Trading at $635.29 with a market cap of $1.61 trillion, the stock appears undervalued according to InvestingPro analysis, which identifies it among undervalued opportunities in the tech sector.
The firm noted that Meta partnered with Stripe in March to launch a checkout experience powered by Stripe’s Agentic Commerce Suite. The system allows buyers to use saved credentials to complete purchases in a few taps.
The checkout process takes users to a product detail page to select size, then to a checkout page to complete the purchase. Citizens said the experience is similar to the retired Facebook and Instagram Shops user experience.
The firm expects merchant pushback as building a basket appears challenging and merchants typically want direct connections to consumers. Meta seeks the data and attribution from on-platform sales.
Citizens now expects a renewed push for on-platform checkout as Meta builds out product tagging across its content. The firm noted the Universal Checkout Platform supports more capabilities including subscription and loyalty features than Meta’s previous checkout experience. With 5 analysts recently revising earnings upwards and the company posting impressive 26% revenue growth, InvestingPro subscribers access 10 additional exclusive tips on META’s growth trajectory.
In other recent news, Meta Platforms Inc. announced plans to introduce subscription offerings under the Meta One umbrella for its major consumer services, including Instagram, Facebook, and WhatsApp. This strategic shift towards premium subscription versions is expected to impact other social media companies. In addition, Meta is testing new subscription models for businesses, creators, and AI users. BofA Securities has reiterated a Buy rating on Meta, maintaining a price target of $835, following the company’s expansion into enterprise-focused AI initiatives. This new Enterprise Solutions unit aims to drive the corporate adoption of Meta’s AI tools. Rosenblatt also reiterated a Buy rating, with a price target of $1,015, highlighting the potential of Meta’s subscription plans. Furthermore, Glass, Lewis & Co. has recommended that shareholders support a proposal by JLens calling for a report on Meta’s content moderation practices, which will be voted on in 2025.
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