Zev Fima has increased the price target for Meta Platforms (NASDAQ:META) to $650 per share. This comes despite a decline in the company's stock during after-hours trading. Fima highlighted the robust third-quarter results, with revenue guidance for the current quarter surpassing expectations.

What Happened: At the time of writing, Meta was sliding down by 3.18% and was trading at $573 during the after-hours market, as per Benzinga Pro after closing at $591.80 on Wednesday.

Fima's new price target indicates a potential upside of over 9.5% from Wednesday's closing price, which was slightly below its record-high close earlier in October. Despite this positive outlook, Fima maintained a "2" rating on the stock, suggesting short-term profit-taking opportunities, CNBC reported Thursday.

"Don't let the after-hours stock action fool you, Meta Platforms delivered one heck of a strong third quarter and a current quarter revenue guide above expectations," he wrote.

Fima praised Meta for its dominance in targeted advertising and strong user engagement, which fosters a beneficial cycle between users and content creators. The company's significant scale supports its growth in artificial intelligence, the metaverse, and virtual reality projects. Fima also commended management's focus on cost control.

Despite the after-hours stock dip, Fima urged investors to focus on the strong third-quarter performance, including revenue surpassing expectations and operating margin expansion. The analyst believes long-term investors will benefit from patience as the company's strategic investments continue to pay off.

Why It Matters: Meta reported third-quarter revenue of $40.59 billion, exceeding analyst estimates of $40.29 billion. The company also reported adjusted earnings of $6.03 per share, surpassing expectations of $5.25 per share. This strong financial performance underlines the company's strategic direction and growth potential.

Additionally, Meta's core business is experiencing significant growth, with a 19% increase. The company's aggressive investment in AI suggests ambitions to monetize search, as noted by Gene Munster of Deepwater Asset Management.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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