Meta’s Review, Shares Are Baking in Much of Concern Around User Mix Shift to Reels
<p>RBC Capital provided its review on <a href='https://financialmodelingprep.com/financial-summary/META'>Meta Platforms, Inc. (NASDAQ:META)</a>, highlighting that investors are increasingly baking in concern around META's user mix shift to Reels.</p>
<p>The analysts evaluated ad load & pricing across Instagram surfaces (& Tiktok) as a way to quantify META's potential variance to 2023 consensus estimates and view the downside from here as being more limited. </p>
<p>While Reels' apparent building headwinds are absolutely concerning, the analysts remained positive on the company leaving the door open for near/medium-term ad targeting signal restoration as this would far outweigh the Reels headwinds.</p>
<p>According to the analysts, users' shift to short-form video & Reels specifically is of rising concern and increasingly baked into the shares. The analysts believe the risk/reward remains attractive and maintained their outperform rating and $190 price target.</p>

NASDAQ:META