By Sam Boughedda

Barclays analysts raised the agency’s value goal on Meta Platforms (NASDAQ:) to $270 from $260 per share on Friday, telling buyers in a be aware that the tech big stays the agency’s most well-liked title amongst mega-cap tech, and it might be “the perfect title in client web to profit from the approaching wave of Generative AI functions.”

“Shares have re-rated considerably previously few months, and whereas we predict the alpha vs. GOOG and AMZN might have been realized on current value cuts, the bull case round how generative AI might unlock worth has not,” wrote the analysts, who maintained an Chubby ranking on the inventory.

They imagine the “large unlock” in AI is prone to be the explosion of content material comparable to video, photos, audio, and many others., akin to what occurred within the early years of YouTube or Netflix, the place the inundation of content material led to an enormous uptick in utilization and engagement.

“In distinction to the investments in VR/AR, which try and convey the person into a very new atmosphere, we predict Generative AI matches the core enterprise a lot better on cellular and desktop and will find yourself being META’s elusive ‘second act’ whereas these longer-dated applied sciences across the metaverse shift again to the third act,” they added.

The analysts additionally imagine AI solves the engagement issues that META has suffered from in a few of its social media apps traditionally whereas additionally serving to its advert enterprise.