Mark Zuckerberg’s Unwittingly Helped by Elon Musk? This Meta Analyst Can See Stocks Double in a Matter of Months

These include Apple Inc.’s privacy measures, competition from TikTok and the end of the pandemic. He also mentioned that Reels cannibalizing more lucrative segments of Facebook and Instagram platforms and weak consumer spending within sectors Meta has ad exposure to.

Mark Zuckerberg of Meta should send Elon Muska a truly extravagant holiday gift, most likely a huge yacht, Tilson stated. He explained that this is to create so much chaos at Twitter that regulators, media, and investors are distracted by the drama at Meta.

The analyst stated that Meta managed to report a 20% operating profit and $4.4 billion net income in the third quarter despite the difficult backdrop.

Headwinds can’t get worse: Tilson stated that Meta’s headwinds won’t be getting worse, and some of them could turn into tailwinds. He said that Meta’s AI investment could improve ad targeting which in turn could help Reels perform more than TikTok.

According to the analyst, Meta’s year-over-year comparisons could become more stable over the next year than they were last year. He believes there is a chance for improvement.

Tilson stated, “My experience has been that exceptional businesses who have suffered a lot of losses turn around and it doesn’t just pop 20% – rather, it’s often 50% to 100% within a few months.”

He said that Meta remains a solid buy.

Price Action: Meta stock lost 66% in the past year. On Tuesday, it settled 6.79% lower, at $114.12, according to Benzinga Pro data.