Meta Platforms Inc has already rallied a whopping 150% this year but Mark Mahaney remains convinced that this stock could move further up.

Here’s why Mahaney is bullish on Meta stock

The Head of Internet Research at Evercore ISI, Mahaney is bullish on the tech titan because of its commitment to cutting costs.

A continued rebound in advertising, he told CNBC Friday morning, will also continue to be a meaningful benefit for the Meta stock. Earlier this month, the multinational was reported considering charging for ad-free Instagram and Facebook in Europe.

Meta Platforms is scheduled to report its financial results for the third quarter on October 25^th. Consensus is for it to earn $3.57 a share versus $1.64 per share a year ago.

His $435 price target on Meta stock suggests another 40% upside from here.

What Mahaney will look for in Meta’s earnings report

Meta Platforms Inc is among a handful of tech companies that includes forecast for capital expenditures or total expenses in the earnings release.

Mark Mahaney is convinced that it will be a meaningful benefit for Meta stock if the upcoming quarterly update signals the Nasdaq-listed firm has decided to stick with its “year of efficiency” narrative.

If that shows continued moderation in growth, year of efficiency becomes years of efficiency, this stock rerates higher because Meta is cheapest high-quality tech stock out there at 16 times earnings.

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