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After snapping its 20-day win streak earlier this week, is Meta Platforms (META) stock overdue for a split?
Citi senior analyst of Internet Equity Research Ron Josey says that a split is unlikely, going on to underline Meta's user growth across its platforms — Facebook, Instagram, Threads — and growth in AI spending and advertising revenue.
"And as long as usage continues to be strong across, whether it be Reels or the feed or Stories, or as Meta AI actually gains users... all these different platforms, as engagement grows, that creates greater opportunities for advertisers to reach their audience," Josey tells Seana Smith and Brad Smith.
"And I guess the end of the day... what's driving the move on Meta... it's more advertisers finding more surfaces and being able to really target users and and generate that return on ad spend that's needed."
Josey stipulates that all this is an extension of CEO Mark Zuckerberg's so-called "Year of Efficiency." The drop in Meta's stock has notably brought Zuckerberg's net worth down by $7 billion.
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Also catch Third Bridge's Scott Kessler explain to Yahoo Finance what Meta's investment into humanoid robots means for the company's AI narrative.
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This post was written by Luke Carberry Mogan.