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Meta's Instagram Changes Ultimately Will Boost Ad Revenue, UBS Says

Published 26/03/2022, 04:46 am
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By Sam Boughedda

Investing.com -- Meta Platforms Inc (NASDAQ:FB) stock inched up 0.4% after UBS analyst Lloyd Walmsley reiterated a buy rating and $280 price target.

The analyst's price target implied a potential 27.5% upside. 

The analyst said in a note that it was time to talk about making money from the video format Reels.

Walmsley said Instagram newsfeed changes, along with Reels monetization should help to drive a "meaningful bump" to time spent on the social media platform overall and lead to higher monetization at scale.

The push of Reels before monetization could see a 6% revenue challenge in the first half of the year, added Walmsley. However, as the company scales up monetization, it could turn into a 8% to 15% tailwind, he noted, driving a "meaningful inflection" in advertising revenue.

After initially hitting a high of $225.50 on Friday, the shares are trading around the $220.50 mark.

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