Mark Zuckerberg’s Meta Platforms (NASDAQ:META) has teamed up with the U.K.’s Vodafone (NASDAQ:VODA) (GB:VOD) to optimize short-form content on the latter’s network. The collaboration is aimed at freeing up network capacity and improving its efficiency.
The Collaboration
The two companies recorded a substantial decrease in network traffic for Meta’s applications across Vodafone’s mobile network during an initial three-week test. The freed-up network capacity could benefit users in busy locations such as shopping centers and transport hubs.
Notably, Vodafone has applied this network optimization in 11 European markets since the beginning of June. Furthermore, the two collaborators are open to working with other players in the telecommunications sector to deliver more efficient networks. Spain’s Telefonica is also working with Meta to optimize video traffic on its networks.
Meta’s Focus on Short-Form Content
For Meta, efficient networks could lead to increased usage of its numerous apps as users spend more time on their smartphones. Recently, the company has been relying on Instagram to make gains in the short-form video category. Its microblogging app Threads also recently surpassed 175 million monthly active users. While Meta has yet to monetize Threads, the app is a key challenger to Elon Musk’s X (formerly Twitter).
Is Meta a Buy, Sell, or Hold?
Meanwhile, Meta stock’s impressive run continues with a nearly 80% price gain over the past year. Overall, the Street has a Strong Buy consensus rating on Meta, with an average META price target of $528.53. However, a price-to-earnings multiple of 31 means the company’s shares aren’t exactly cheap at current price levels.
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