Meta Platforms rises as Citi notes Reels monetization is "ramping up"
Justin Sullivan

Meta Platforms (NASDAQ:META) shares rose on Friday as investment firm Citi noted that monetization of its Reels short-form video product is "ramping up."
Analyst Ronald Josey, who has a buy rating and $222 price target on Meta Platforms (META), noted that ad loads on Reels reached 14% last month, compared to 8% in July and 10% in August, with the ad exposure coming earlier in the viewing. 
"We recognize it remains early days in Reels monetization and the challenges in engagement given the competition in Short-Form-Video, but we also believe Reels could have naturally higherâand largely incrementalâad loads over time and integration of Reels content within Feed, Stories, and Messenger complements Metaâs evolving MSI," Josey wrote in a note to clients.
The analyst added that although macro concerns are a headwind, the firm is encouraged by the recent ad format announcements, as well as improved Reels monetization and a greater focus on expenses help create a "compelling risk-reward" at current levels. 
Meta (META) shares rose 0.5% to $139.70 in premarket trading. 
Earlier this week, it was reported that Meta Platforms (META) would look to shrink its offices overall as a significant portion of its employees continues to work from home.