Meta stock could jump 30% as Mark Zuckerberg sobers up on his metaverse ambitions and focuses on other initiatives, Gene Munster says

• Meta stock could see a 30% upside as Mark Zuckerberg shows he's listening to investors, Gene Munster says.
• Despite the Meta CEO's ambitions in the metaverse, Zuckerberg promised investors a "year of efficiency."

Meta stock could pop as much as 30% as Mark Zuckerberg appears to finally be waking up to investors' tepid response to his metaverse ambitions and focusing the company on other initiatives, Deepwater Asset Management partner Gene Munster said Thursday.

Though Munster previously predicted an "ugly" fourth quarter for Meta, the company's stock soared on Thursday morning after it announced it would be buying back $40 billion in shares and start slashing costs. Shares rose to $182.35 at 10:00 am ET, up 19% from Wednesday's close.

That comes after a dismal year for the Facebook parent, which saw shares plunge 64% in 2022 amid rising inflation and higher interest rates. The company also missed its earnings targets last year partly due to Zuckerberg's investments in the metaverse, a lofty project that burned through $13.72 billion and angered many of Meta's investors.

But Zuckerberg shifted his tone in Meta's latest earnings call, Munster noted. The Meta CEO promised investors a "year of efficiency," and said the firm would direct its focus towards its artificial intelligence initiatives as well as improving some of its key platforms, like Reels and Messenger. Zuckerberg also didn't mention the metaverse among his top priorities for the companies this year, Munster added – and that's a good sign for investors.

"It's as if Zuckerberg is just saying what investors want to hear," Munster said in an interview with CNBC on Thursday. "What that tells me is that Zuckerberg gets it and that's important."

He added that Meta's revenue guidance for 2023 is more in line with analysts' predictions, and had taken into account macroeconomic headwinds over the upcoming year. Munster estimated that the firm's earnings would rise 17%, adding Meta and other FAANG stocks could see upside of around 30% in 2023.

In a thread on Twitter, Munster applauded Zuckerberg's response to shifting macro conditions, which have hammered the tech industry overall.

"It's worth noting that Zuckerberg is the only founder and CEO of a mega cap tech company … That role comes with an ego and I give him credit for being teachable and acting on what investors want," he added.