Meta Surged to New Heights is there Room for Continued Growth

Meta and Amazon stocks have risen following an increase in their price targets by a Wall Street analyst team. Jefferies, the analysts, reiterated a buy rating for Meta ( META ) and raised their price target for the Facebook parent company to $585 from $550. Additionally, they raised their price target for Amazon stock to $225 from $190. Meta's stock has risen more than 3.5% to $525.62, and Amazon's stock is up more than 1% at $184.88, approaching an all-time high above $188 reached in July 2021.

Jefferies' report stated that Meta ( META ) has too many advantages to count compared to competitors in the digital advertising market. Meta's revenue is mostly driven by ads, and the company has been investing in artificial intelligence tools to help drive more engagement and ad sales on its applications. They include Facebook, Instagram, Reels, WhatsApp, and Threads. As a result of these investments, Meta ( META ) has developed several strategic advantages over peers, such as a strong artificial intelligence-based recommendation engine for its Reels short-video product that is driving more time spent on Facebook and Instagram.

Meta ( META ) is set to report its first-quarter earnings on April 24 and has seen a 47% increase in its stock price this year. In addition, Meta Platforms Inc. ( META ) is reintroducing cash bonuses for content creators on its social media apps. The company is testing the "Spring Bonus" initiative in the United States, South Korea, and Japan, rewarding creators on Instagram for engagement not just on videos and reels, but pictures as well. The maximum creators can earn in thirty days is $30,000. The company will also similarly reward select creators for engagement on Threads, its Twitter-like social app, and content labeled as "collaboration" or "branded" will not be eligible for monetization.

Technical Outlook
Meta ( META ) for 20 weeks now has been trading above the 200, 100 and 50-day Moving Averages respectively with a Relative Strength Index (RSI) of 63 indicating strong bullish sentiment.