Why the Street Is Betting on Meta Platforms, Inc. (META)’s Instagram-Led Growth

Meta Platforms, Inc. (NASDAQ:META) is among the most profitable mega cap stocks to buy. On February 9, Sachin Mittal, an analyst at DBS, reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) and set a $1,000 price target. This suggests an upside potential of nearly 48% from the current price.

On the same day, Reuters reported that Meta Platforms, Inc. (NASDAQ:META) reacted strongly to EU regulators following the antitrust charges on the company and warned to block rival AI tools on WhatsApp.

Meta Platforms Inc. (META) Positioned for AI Growth With Wedbush Best Ideas Upgrade

As stated by a Meta spokesperson in an email,

“The facts are that there is no reason for the EU to intervene in the WhatsApp Business API. There are many AI options and people can use them from app stores, operating systems, devices, websites, and industry partnerships.”

Later on February 10, Citizens maintained a Market Outperform rating and $900 price target on Meta Platforms, Inc. (NASDAQ:META), citing robust Instagram engagement momentum. Andrew Boone from Citizens notes that Instagram’s global time spent has accelerated by 18% YoY or faster for the last six months, with US time spent growth on Instagram alone increased by at least 16% over the same period.

Meta Platforms Inc. (NASDAQ:META) operates major social media services, including Facebook, Instagram, WhatsApp, Messenger, and Threads, as well as virtual reality products such as Oculus headsets.

While we acknowledge the potential of META to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.