Meta Shares Surge 4% on Morgan Stanley Top Pick

Meta Platforms' shares surged 4 percent in Tuesday trading, climbing from an opening price of 536.38 to around 558, following a sharp selloff that erased nearly 280 billion dollars in market value during March. The rebound came amid renewed investor interest driven by a top pick designation from Morgan Stanley and optimism surrounding the company's artificial intelligence initiatives, even as concerns over heavy spending and legal challenges persist.

The stock had plunged 11 percent last week and about 19 percent this month, marking its worst performance since October 2022, when disappointing revenue guidance and metaverse investments rattled investors. Year to date, shares are down roughly 18 percent, a stark reversal from early January gains of 8.5 percent that positioned Meta as a leader among major technology firms. Trading at approximately 15 times projected 2027 earnings, the stock now sits one standard deviation below its decade-long average multiple, levels analysts say present a compelling entry point.

Morgan Stanley analyst Brian Nowak reiterated an Overweight rating and named Meta his firm's top internet stock pick, citing robust advertising fundamentals, accelerating...