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Investing.com - Guggenheim raised its price target on Meta Platforms Inc. (NASDAQ:META) to $800.00 from $725.00 on Monday, while maintaining a Buy rating on the stock ahead of its July 30 earnings report. The social media giant, now valued at $1.79 trillion, has seen its shares climb over 53% in the past year, trading near its 52-week high of $747.90.
The firm’s pre-earnings buyside survey showed Meta as the second-ranked long idea into earnings, with 27% of 105 respondents selecting it, while only 10% ranked it as a short idea, placing it ninth in that category. InvestingPro data reveals that 10 analysts have recently revised their earnings estimates upward, with the company maintaining impressive gross profit margins of 81.77%.
Guggenheim’s intra-quarter advertising checks indicate continued Direct Response demand strength fueled by progress on Advantage+, with current consensus forecasts implying further compression of Meta’s advertising growth relative to Google (NASDAQ:GOOGL) Search and Other.
The firm believes that maintaining first-quarter trends would imply 18% ad growth and $46.1 billion in total second-quarter revenue, compared to $45.5 billion at the high end of Meta’s guidance range.
Guggenheim also noted that Meta’s commitment to AI investments is likely to fuel "further aggressiveness in investment," with its buyside survey showing 95% of respondents forecasting 2026 capital expenditures of $76 billion or higher, while Guggenheim now models $82 billion.
In other recent news, Meta Platforms has been the focus of several notable developments. The company has appointed Shengija Zhao as Chief Scientist of Meta Superintelligence Labs, where Zhao will shape the research agenda and scientific direction. Additionally, Meta has expanded its AI capabilities by hiring three researchers from Google DeepMind, known for their work on a model that excelled in the International Math Olympiad. Analyst firms have shown optimism about Meta’s financial prospects, with Benchmark raising its price target to $800, citing stable revenue expectations. Bernstein also increased its price target to $775, acknowledging Meta as a leader in AI and noting improvements in advertising effectiveness. Stifel raised its price target to $845, anticipating positive second-quarter earnings and improved guidance. These developments highlight Meta’s strategic focus on AI and its potential impact on future earnings.
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