EssilorLuxottica stock climbs as Meta reportedly plans to buy 5% stake By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2024
0mins
Should l Buy META?
Source: Investing.com
Meta's Investment in EssilorLuxottica: Meta Platforms Inc is planning to invest €5 billion ($5.4 billion) to acquire a 4-5% stake in eyewear company EssilorLuxottica, with ongoing discussions about a potential board seat for Meta.
Partnership and Smart Glasses Development: The investment follows an extended partnership between the two companies focused on developing Ray-Ban branded smart glasses, which have seen improved sales performance with their latest version released in late 2023.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 670.210
Low
655.15
Averages
824.71
High
1117
Current: 670.210
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI-Driven Revenue Growth: Meta achieved a 24% revenue growth in Q4, driven by increased user engagement and stable ad price hikes, demonstrating its effectiveness in AI applications and market potential.
- Generative AI Potential: Meta is planning to leverage generative AI to attract more advertisers, combining personalized content and shopping agent features, which is expected to generate substantial ad revenue and further solidify its market position.
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- Industry-Wide Implications: Experts have noted that this case resembles lawsuits against “Big Tobacco” in the 1990s, potentially having far-reaching effects on Meta and the broader social media industry, especially as public concern over social media safety grows.
- Witness Testimony Scheduled: Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri are scheduled to testify in the upcoming trial, highlighting the high stakes and potential public impact of this case.
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- Strong Codex Performance: OpenAI's coding product Codex grew approximately 50% over the past week, demonstrating increased market acceptance and potentially eroding market share from competitors like Claude Code.
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- Allegations Details: The lawsuit claims that Meta steered users, including children, towards sexually explicit and exploitative content, even facilitating human trafficking, which underscores the potential dangers social media poses to young users' mental health.
- Legal Implications: This lawsuit is likened to the cases against 'Big Tobacco' in the 1990s, potentially leading to profound repercussions for Meta and the broader social media industry, especially as public concern over youth protection intensifies.
- Upcoming Trials: In addition to the New Mexico case, Meta faces another trial in California involving multiple social media platforms accused of designing defective apps that contribute to unhealthy behaviors in teens, further fueling discussions on social media accountability.
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