Barton Crockett, senior analyst and managing director at Rosenblatt Securities, provided insights into the technology sector’s future during his appearance on CNBC’s ‘Squawk on the Street’. Discussing his views for 2025, Crockett expressed a preference for Meta (META) over Apple (AAPL) in terms of investment opportunities, explaining his firm’s strategic shift in focus from one tech giant to another.
Crockett highlighted that Apple had been Rosenblatt’s top pick for the latter half of the previous year, contributing to a nearly 20% rise in its stock price. However, entering 2025, he sees Meta as the better bet due to its robust growth in ad sales, powered by AI. He pointed out that Meta’s stock is reasonably valued while still offering significant growth potential, leading to his recommendation of Meta as the top pick for the first half of 2025. He noted that Meta’s ability to leverage AI for ad sales, alongside potential margin expansion, positions it well for another strong performance year.
The discussion then turned to Crockett’s bold price target for Meta at $811, a significant jump from its current price of $603.05. He justified this target by suggesting that Meta would be trading at a high twenties PE ratio, with the company expected to grow its earnings per share significantly. Crockett emphasized Meta’s strategic focus on AI, efficient share repurchasing, and overall strong setup for growth, which underpins his optimistic outlook.
On the subject of streaming and the role of sports content, Crockett discussed Netflix’s foray into live sports broadcasting, specifically referencing the NFL Christmas game. He acknowledged Netflix’s surprising effectiveness in generating interest in sports events like the Tyson-Paul fight, suggesting that if Netflix (NFLX) can deliver a larger audience for sports than traditional television, it could redefine how sports content is consumed and monetized through streaming platforms. He indicated that the exact impact of the NFL game on Netflix’s platform was still to be fully assessed, but early indications were promising with around a third of concurrent users watching the game, potentially signaling a shift in the sports streaming landscape.
Crockett’s analysis not only provides a nuanced view of investment opportunities within tech stocks but also touches on the evolving dynamics of content delivery, particularly how sports might become a pivotal battleground for streaming services in 2025. His insights suggest a year where AI-driven growth and innovative content strategies could significantly influence market trends and investor decisions.
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