Meta Platforms Performance Boosts Analyst Optimism

Meta Platforms, Inc. (NASDAQ:META) is under scrutiny as part of Harvard University's investment portfolio, which boasts a $53.2 billion endowment, heavily invested in private equity and hedge funds. Despite a strong performance, with a seven-year annualized return of 9.3%, Harvard's fiscal year 2024 returns lag behind peers like Columbia and Brown. Concurrently, institutional investors are shifting focus, with Morgan Stanley noting that Microsoft is the most under-owned mega-cap tech stock, while Meta is identified as over-owned, indicating potential risks. The Metaverse is driving demand for tech stocks like Meta and Nvidia, projected to grow significantly in the coming years. Analysts suggest Meta's stock is undervalued, with a potential price target of $668 per share based on strong free cash flow and increasing daily active users across its platforms. However, the competitive landscape remains tense as Meta seeks to regain advertising effectiveness lost due to Apple’s privacy changes.