5 Stocks With Huge Catalysts on the Way

4. Meta Platforms, Inc. (NASDAQ:META)

JMP Securities analyst Andrew Boon in July this year said Meta Platforms, Inc. (NASDAQ:META) is in “early stages” of many catalysts that could boost the company’s stock price. These catalysts include Reels content and the effects of Meta Platforms, Inc. (NASDAQ:META)’s cost cutting measures. Boon analyzed data and said Meta Platforms, Inc. (NASDAQ:META)’s Reels engagement is strong, “adding incremental time and impression growth” to Meta. The analyst also said AI was playing a key role in the amount of time people spend watching Reels content, thanks to improved recommendation algorithm. Meta Platforms, Inc. (NASDAQ:META) invested heavily in Reels last year and the company is ready to enjoy the fruits of its investments. The analyst said the growth in Reels has contributed “toward revenue neutrality with the Feed, which we believe is still on pace to be achieved by year end.”

Artisan Global Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2023 investor letter:

“Our best performing stocks this quarter were Meta Platforms, Inc. (NASDAQ:META), Alphabet and Heidelberg Materials. Meta was the largest contributor to performance. Its shares have almost fully recovered from last year’s declines, rising 35% during the quarter and 138% YTD. During the quarter, the company reported earnings that showed a return to growth and healthy user engagement metrics. Most importantly, profitability appears to have stabilized and is poised to improve as significant cost reduction actions implemented over the past six months begin to have an impact. Separate from fundamental performance, there is excitement over AI’s potential to help the company’s business. While Meta’s technology prowess and massively scaled media platform certainly position the company to take advantage of AI, we believe it’s far too early to estimate any discrete tangible benefits. Overall, we view AI as one of several drivers that will contribute to Meta’s continued growth.”