Meta Analyst Sees Monetization Ramping Courtesy Reels, Newer Ad Formats

Citi analyst Ronald Josey reiterated a Buy on Meta Platforms Inc META and a price target of $222.
Based on his proprietary tracking of ads on IG Reels, he believes monetization is ramping as his data suggests ad loads reached 14% in September compared to 8% in July. An initial ad exposure is now earlier in the experience.
He recognizes it remains early days in Reels monetization and the challenges in engagement given the competition in Short-Form-Video.
Still, he also believes Reels could have naturally higher and largely incremental ad loads over time, and integration of Reels content within Feed, Stories and Messenger complements Meta’s evolving MSI.
Also Read: Move Over Facebook, TikTok, Snapchat — This New Social App Is All The Rage Among Stanford Undergrads
He was encouraged by Meta’s newer ad formats announced earlier this week that he believes represent the beginnings of its rebuilt AI-based ad tech stack.
While macro challenges persist, he believes improved Reels monetization, newer ad formats, and a greater focus on expenses create a compelling risk-reward in shares.
Price Action: META shares traded lower by 3.65% at $134.00 on the last check Friday.

Momentum86.39

Growth72.42

Quality-

Value32.53

Short

Medium

Long

Analyst Calendar