Evercore ISI’s Mark Mahaney sees the potential for more upside ahead for Meta , despite the stock’s monster rally so far this year. It’s a big week for mega tech earnings and the social media giant is expected to report on Wednesday. One thing analysts will be paying close attention to is whether Meta’s rebound in advertising continued in the third quarter, as well as the effect of its cost-cutting measures. META YTD mountain Meta’s year-to-date performance Meta has been able to recover its advertising momentum, said Mahaney, Evercore’s head of internet research, in an interview with ” Squawk Box ” Friday. He noted that his conversations with marketers show that the return on ad spending on the platform has been improving nicely over the last 12 months. His big focus is whether Meta’s ” year of efficiency ” — the company’s focus on trimming spending and improving profitability — continues into the future. The company will give next year’s forecast on capital expenditures and total expenses during its earnings report — one of the few who does so, Mahaney said. “If that shows continued moderation in growth, the year of efficiency becomes the years of efficiency [and] this stock rerates higher because Meta is the cheapest high-quality tech stock out there at 16 times earnings,” he said. Shares of Meta are up 160% year to date.
