Updated at 10:21 a.m. EST
Meta . Platform (META) – Get a free report Shares edged higher on Friday after an upgrade from analysts at JPMorgan amid easing pressure on costs and data privacy.
JPMorgan analyst Doug Anmuth upgraded his rating on this group from “neutral” to “overweight,” and increased his price target from $35 to $115 a share. , citing better cost discipline on social media and augmented reality teams as well as easing pressure from Apple (AAPL) – Get a free report privacy rules, known as App Tracking Transparency (ATT), have made it difficult for Facebook and Instagram to measure the success of some advertising campaigns, leading to data is delayed or restricted.
“Going into 2023, we believe some of these bottom Line pressure will ease and most importantly Meta is showing encouraging signs of increasing cost discipline, we believe there will be more,” Anmuth said.
Last month, Meta revealed plans to lay off about 11,000 people, or 12.5% of its global workforce, in the first major job cuts under CEO Mark Zuckerberg.
Meta CFO Dave Wehner told investors on October 26 that the team expected hiring to slow “significantly” in the coming months, but said that its total head of staff pool – pegged at 87,000 – will be “virtually flat next year from current levels ..
The move comes just weeks after the company confirmed it plans to increase its “meaningful” investment in Reality Labs, the division that will manage the company’s metadata plans and has incurred the loss of more than 9.4 billion USD in the first 9 months of the year. The social media group continues to transform from its Facebook roots.
The expensive business double option, which would add at least $4 billion more to next year’s capital spending plan — is currently pegged at between $30 billion and $34 billion for next year.
Meta shares marked 4.9% higher early Friday trading to change hands at $121.83 per share, a move that still sends the stock down 64% year-to-date.
