Benzinga | Dec 21, 2021 05:50AM EST

Read Why Loop Capital Slashed Meta Price Target By 9.5%; Remains Bullish

* Loop Capital analyst Alan Gould cut the price target on Meta Platforms Inc (NASDAQ:FB) to $380 from $420 and reiterated a Buy.

* The price target implies a 13.8% upside to Meta's December 17 closing price of $333.79.

* The magnitude of Meta's spending on the Metaverse over the next several years and how rapidly the spending at Facebook Realty Labs will increase from the $10 billion being spent in 2021 will be a crucial focus for investors.

* Gould notes the negative reputational issues of Meta are already discounted in the stock at current levels.

* Gould believes that the shares already trade at an "undemanding valuation."

* Meta, formerly Facebook, is the world's largest online social network, with 2.5 billion monthly active users.

* Price Action: FB shares traded higher by 0.54% at $327.20 in the premarket session on the last check Tuesday.