Amazon jumps 5% after AWS and OpenAI announce $38B partnership
Investing.com - DA Davidson has reiterated its Buy rating on Meta Platforms Inc. (NASDAQ:META) with a price target of $825.00 following the company’s third-quarter 2025 earnings report. The social media giant, currently valued at $1.65 trillion, trades at a P/E ratio of 24.06, with analysts maintaining a strong consensus Buy recommendation.
Meta’s quarterly results exceeded revenue expectations but fell short on the bottom line, with diluted earnings per share (EPS) coming in at $1.05 compared to consensus expectations of $6.70.
The significant EPS miss was attributed to a one-time tax charge of approximately $16 billion that impacted the company’s profitability for the quarter.
According to DA Davidson analyst Gil Luria, Meta continues to increase its investment in artificial intelligence resources, primarily in the form of computing power and talent acquisition.
Meta’s management believes these investments in AI capabilities are essential to maintaining the company’s competitive advantage over rivals in the technology sector.
In other recent news, Meta Platforms Inc. reported strong third-quarter results, with revenue reaching $51.2 billion, marking a 26% year-over-year increase. This performance exceeded analyst expectations by 5%, while the company also achieved an adjusted EBITDA of $31.0 billion, reflecting a 21% growth from the previous year. Meta is planning to sell at least $25 billion in bonds to fund its artificial intelligence infrastructure investments. Analysts have responded to these developments with various price target adjustments. Truist Securities lowered its price target to $875, citing robust advertising gains driven by AI improvements. TD Cowen also adjusted its target to $810, highlighting higher AI spending. RBC Capital reduced its price target to $810 due to a challenging quarter and increased future expense outlooks. Conversely, Rosenblatt raised its target to $1,117, maintaining a Buy rating following the strong financial performance.
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