Meta likely to benefit from shift to Reels as TikTok scrutiny steps up: analyst
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Meta Platforms (NASDAQ:META) is likely to benefit over the long-term as advertisers continue to shift budgets towards the company's Reels product, especially as scrutiny surrounding ByteDance's (BDNCE) TikTok reaches a fever pitch.
Monness, Crespi, Hardt analyst Brian White noted that even though Reels was launched in 2020 in direct response to TikTok, it's only been recently the product has started to show signs of progress, pointing to the fact Reels plays have "more than doubled" over the past year. White has a buy rating on Meta (META) stock.

While monetization efforts for Reels are still below other products from Meta, White said the company's management expects Reels to be "revenue neutral" by the end of the year, or at the latest, early 2024.
TikTok CEO Shou Chew is set to testify before the U.S. House Energy and Commerce Committee tomorrow, an event that White believes will be closely scrutinized, given the sole focus will be on him and not other social media platforms.
Separately on Wednesday, KeyBanc Capital Markets upgraded Meta (META) to overweight, citing bigger-than-expected cost cuts and robust ad revenue.