Social media giant Meta Platforms (META) is getting ready to roll out advertisements on its social network Threads for the first time in order to expand the company’s revenue streams. The move will also increase competition for Elon Musk’s X, which competes directly with Meta. However, only ads from a select group of brands will appear initially, with the U.S. and Japan being the only markets for now.
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According to Instagram boss Adam Mosseri, the Threads ads are a “test” that will be closely monitored before scaling them to more markets and brands. The company’s goal is to make ads on Threads as engaging as organic content. This development comes after months of speculation about Meta’s plans to monetize Threads.
It is worth noting that Threads currently has 300 million monthly users and over 100 million daily users as of December.
Investor Sentiment at Meta Is Positive
Meta has been on fire over the past couple of years. Therefore, it is no surprise that investor sentiment is currently positive for its stock. In fact, almost 8% of portfolios tracked by TipRanks own shares of Meta, with an average weighting of 8.31%. Furthermore, 3.1% of portfolios increased their Meta holdings over the past 30 days.
Is META Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 40 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 64% rally in its share price over the past year, the average META price target of $692.41 per share implies 7.7% upside potential.
