Analyst adjusts Meta stock price target with earnings on tap
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Throughout the course of human history, the world has seen the likes of such great minds as Leonardo Da Vinci, Thomas Edison, Albert Einstein... and Ron Popeil.
All right, we're just messing with you on that last one, but in all fairness, Popeil has been hailed as a marketing genius.
Related: Analyst revises Meta stock price target ahead of earnings
The inventor and founder of the direct response marketing company Ronco, Popeil gave civilization such nifty gadgets as the Veg-O-Matic, the Chop-O-Matic, the Pocket Fisherman, the Cap Snaffler, and Mr. Microphone, to name just a few "as seen on TV" items.
But, wait, there's more, which, by the way, was one of Ronco's most famous taglines.
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Popeil also popularized the slogan "set it and forget it" to sell the Ronco Rotisserie oven, with the idea that you could toss your chicken into the cooker and not worry about the bird being blasted to cinders.
Analysts at Bernstein used the same line on Oct. 25 when the firm adjusted its target on Meta Platforms.
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Analyst cites Meta's AI winner story
Shares are up 62% year-to-date, the firm said, and Meta has replaced Google as the “set-it-and-forget-it” blue chip holding that offers a growing, healthy core business, an AI winner story with lower terminal risk, and a shareholder-friendly management team.
The setup through year-end offers a more balanced risk-reward as decent ad buyer checks, higher CPMs, or cost per thousand impressions, an advertising metric, as well as a shorter holiday shopping season, and limited guidance on key 2025 metrics, Bernstein said.
Related: Analyst reset Meta stock price target ahead of Q3 earnings
Shares of Alphabet (GOOGL) , Google’s parent company, are up 18% year-to-date and 19% for the year. The company is scheduled to report third-quarter results on Oct. 29.
The firm also said that helpful foreign exchange trends are offset by weaker-than-expected ad spending from Chinese online marketplace Temu and Chinese-founded fast fashion retailer Shein,
The Singapore-registered Shein saw profits fall over 70% in the first half of the year due to fierce competition from rivals such as Temu, according to a report by The Information.
Revenue growth slowed to 23% during the period, down from 40% for the full year of 2023, and profits dipped below $400 million, The Information reported, citing unnamed sources.
The slowing earnings growth adds further uncertainty to Shein’s initial public offering plan on top of regulatory obstacles
The company is preparing for a listing in London and has held talks with potential investors, after abandoning an earlier plan to go public in New York amid pushback from U.S. lawmakers, according to the South China Morning Post.