Citi keeps a Buy rating on Meta Platforms (META) with a $705 price target after a federal U.S. Court of Appeals upheld the PAFACA act requiring ByteDance to divest TikTok by January 19, 2025, or face a national ban. Although TikTok plans to appeal the decision, the possibility of a ban creates a significant engagement and monetization opportunity across the largest social platforms in the U.S., the analyst tells investors in a research note. Citi highlight Meta’s Instagram and Facenbook, Google’s (GOOG, GOOGL) YouTube, Snap (SNAP), Pinterest (PINS), and Reddit (RDDT) as potential beneficiaries. Engagement benefits are likely to be somewhat more gradual, but advertisers are likely to accelerate their spend off of TikTok as they invest in other platforms, says Citi. Meta remains its top pick across the internet sector.
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