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On Monday, Jefferies, a well-established financial services company, maintained a strong position on Meta Platforms Inc. (NASDAQ:META), reiterating a Buy rating with a steadfast $600.00 price target. Currently trading at $516.54 with an impressive 81.68% gross profit margin and strong revenue growth of 21.94%, Meta continues to demonstrate robust financial performance. Brent Thill, an analyst at Jefferies, emphasized Meta's continued dominance in the field of large language models (LLMs) following the release of the Llama 4 update.
Thill highlighted several key aspects of the Llama 4 release that reinforce Meta's leadership in the industry. The update showcases an impressive cost to performance ratio, which is expected to encourage broader adoption of the technology. While Meta has not yet released reasoning models comparable to DeepSeek R1, Thill anticipates that such developments could significantly enhance performance in the near future. According to InvestingPro, Meta maintains excellent financial health with a "GREAT" overall score, suggesting strong fundamentals to support its technological initiatives.
The analyst also pointed out that Meta is effectively utilizing its abundant data and computational resources, which gives the company a competitive edge. Thill underscored the growing value of the Llama project, estimating that it could contribute at least $80 billion to Meta's market capitalization, translating to a 6% increase in its value.
Meta Platforms Inc. continues to invest in advanced technologies, bolstering its position in the tech industry. With the Llama 4 release, the company demonstrates its commitment to innovation and its ability to maintain a leading role in the development of large language models.
In other recent news, Meta Platforms Inc. is preparing to invest nearly $1 billion in a data center project in Wisconsin, as part of its efforts to enhance its AI and cloud infrastructure. Meanwhile, the release of Meta's Llama 4 AI model has been postponed due to performance issues, with a new target release date set for April 2025. Intel (NASDAQ:INTC) has announced support for the Llama 4 models, integrating them with its Gaudi 3 AI accelerators and Xeon processors, which are optimized for demanding AI workloads. In a related development, TD Cowen has adjusted its outlook on Meta Platforms, lowering the stock target to $725 from $785, while maintaining a Buy rating. The analysts anticipate strong first-quarter results, with total revenue expected to be at the high end of guidance and advertising revenue projected to grow by 17% year-over-year. However, they have revised estimates for the latter part of 2025 due to macroeconomic concerns. Despite these adjustments, TD Cowen remains optimistic about Meta's advertising revenue growth, predicting a 14% increase year-over-year in 2025. The ongoing developments reflect Meta's strategic focus on AI and advertising, amid broader economic challenges.
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