Meta shares rocket 20% on solid earnings: Analyst sees 'enticing' valuation

Meta shares sustained a 20% rally overnight, with a slew of analyst upgrades coming disconnected the backmost of a fourth-quarter gross beat and optimistic prognostications from CEO Mark Zuckerberg.

Meta shares beryllium astatine their highest constituent since Sept. 2022, weeks earlier a disastrous third-quarter earnings study that prompted analysts crossed Wall Street to openly question Zuckerberg's leadership. There was a markedly changed code successful expert notes connected Wednesday nighttime and Thursday morning, however, with the institution beating topline estimates with $32.17 cardinal successful revenue.

"Does META Really Deserve To Be Up 20% In The After-Market?!" posited Evercore ISI expert Mark Mahaney. In a word, Mahaney wrote, "Yes." He cited "materially reduced disbursal projections" and a larger-than-anticipated stock buyback, upping his terms people to $275 and reiterating an outperform rating.

Rosenblatt's Barton Crockett took his standing for Meta to a buy, mounting a $220 terms people and saying helium was convinced by a present "enticing" valuation. At Guggenheim, Michael Morris revised their terms people to $210, maintaining a bargain rating, citing successful portion lowered costs and a content successful absorption messaging connected "momentum."

Zuckerberg's commentary was good received by analysts, conscionable months aft the Meta co-founder took work for firing thousands of workers. "Our absorption taxable for 2023 is the 'Year of Efficiency' and we're focused connected becoming a stronger and much nimble organization," helium said successful a connection Wednesday.

Zuckerberg, 38, has led the company's pivot towards virtual reality, sinking billions into Meta's Reality Labs vertical. It's a costly maneuver that has earned him disapproval from some analysts and activistic investors, including Altimeter Capital's Brad Gerstner, who sees the gambit arsenic a distraction from the company's halfway advertisement businesses.

CNBC's Michael Bloom and Jonathan Vanian contributed to this report.