On Oct 31, major Wall Street analysts update their ratings for $Meta Platforms (META.US)$, with price targets ranging from $600 to $800.
Morgan Stanley analyst Brian Nowak maintains with a buy rating, and maintains the target price at $600.
Goldman Sachs analyst Eric Sheridan maintains with a buy rating, and maintains the target price at $636.
J.P. Morgan analyst Doug Anmuth maintains with a buy rating, and adjusts the target price from $640 to $660.
BofA Securities analyst Justin Post maintains with a buy rating, and adjusts the target price from $630 to $660.
Citi analyst Ronald Josey maintains with a buy rating, and adjusts the target price from $645 to $705.
Furthermore, according to the comprehensive report, the opinions of $Meta Platforms (META.US)$'s main analysts recently are as follows:
Meta Platforms continues to indicate a considerable rise in capital expenditures for 2025. Despite this, there are numerous factors that could mitigate the financial impact of these investments. These include an anticipated increase in revenue dollar growth in 2024, which is currently estimated at approximately $28 billion. Additionally, there is a possibility for an increase in advertising revenue in 2026 and the years that follow, which could be driven by the introduction of new products that leverage generative AI technology.
Meta Platforms' shares experienced a 3% decline following the third-quarter report, as the positive forecast for fourth-quarter revenue was counterbalanced by anticipated substantial increases in 2025 capital expenditures and infrastructure-related costs. Although the company's focus may be shifting from immediate earnings to long-term prospects, it has demonstrated significant advantages from artificial intelligence in its core advertising operations. With a strong lineup of products in Meta AI, Llama, and other initiatives, the company's robust revenue growth and consistent performance provide it with the latitude to make considerable investments in AI. Revenue projections for 2025 and 2026 have been revised upwards by 2% and 3% respectively, after the recent earnings announcement.
Following Meta Platforms' third-quarter revenue and earnings per share surpassing expectations, and a fourth-quarter outlook that aligns with current projections, revenue estimates for 2025 have been increased by 3%, and earnings per share predictions by 6%. This adjustment takes into account enhanced advertisement monetization, which is slightly balanced by increased research and development and capital expenditures.
Meta Platforms appears to be regaining its stride, as evidenced by growth surpassing that of the digital advertising industry, enhancements in the business driven by artificial intelligence, and the CEO's demonstration of a roadmap that showcases a readiness to make significant bets. While long-term technology investors may view these developments positively, the simultaneous surge in the company's multiple to recent peaks presents an element of concern.
Post the Q3 report, there's an observed increase of 20% year-over-year in advertising revenue when setting aside currency effects, with growth in ad impressions and pricing, indicating Meta Platforms' ongoing expansion in the overall ad budget market share. The company is seeing engagement boosts on Instagram and Facebook, credited to the artificial intelligence recommendation engine, underscoring the potential of early returns from AI investments. It's suggested to consider any post-earnings decline in share value as an opportunity.
Here are the latest investment ratings and price targets for $Meta Platforms (META.US)$ from 21 analysts:
Note:
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