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Investing.com - Susquehanna raised its price target on Meta Platforms Inc. (NASDAQ:META) to $900.00 from $700.00 on Thursday, while maintaining a Positive rating on the stock following the company’s strong quarterly results and guidance. The new target reflects growing confidence in Meta, which currently commands a market capitalization of $1.75 trillion and maintains a highly favorable analyst consensus rating of 1.41 according to InvestingPro data.
Meta guided third-quarter revenue ahead of expectations, projecting growth of 21% year-over-year at the midpoint (range of $47.5 billion-$50.5 billion), which exceeded Susquehanna’s estimate of 13% growth and consensus expectations of 14% growth. This guidance builds on Meta’s impressive track record, with the company achieving 19.37% revenue growth over the last twelve months and maintaining industry-leading gross profit margins of 81.77%. The company expects foreign exchange to provide a one-point tailwind to year-over-year revenue growth.
For expenses, Meta narrowed its 2025 expense guidance from $113 billion-$118 billion to $114 billion-$118 billion and adjusted its capital expenditure outlook from $64 billion-$72 billion to $66 billion-$72 billion. The company also provided preliminary commentary on 2026, expecting expense growth to exceed 2025’s rate of 20-24% year-over-year.
Meta plans to continue scaling Superintelligence Labs through the addition of technical talent as it makes progress on Llama 4 and its next generation of models. The company also highlighted that ad load continues to ramp on Threads and noted the introduction of new ad formats on WhatsApp. With an overall financial health score of "GREAT" on InvestingPro, which offers 13 additional key insights about Meta’s performance and valuation, the company appears well-positioned to fund these strategic initiatives while maintaining strong profitability.
Based on the results and guidance, Susquehanna raised its 2025 revenue estimate by 5%, EBITDA by 8%, and EPS by 13%, while for 2026, the firm increased its revenue estimate by 8%, EBITDA by 10%, and EPS by 12%.
In other recent news, Meta Platforms Inc. reported impressive financial results for the second quarter of 2025, with earnings per share (EPS) and revenue both surpassing analyst forecasts. The company achieved an EPS of $7.14, notably higher than the anticipated $5.85, marking a 22.05% surprise. Revenue also exceeded expectations, reaching $47.5 billion, which is 6.26% above the forecast. Following these results, several analyst firms have adjusted their price targets for Meta Platforms. Morgan Stanley (NYSE:MS) raised its price target to $850, citing improved engagement and monetization metrics driven by AI advancements. DA Davidson increased its target to $825, highlighting the strong growth in Meta’s Family of Apps. BofA Securities and Citizens JMP both set their price targets at $900, emphasizing Meta’s potential benefits from artificial intelligence opportunities. These developments indicate a positive outlook from analysts regarding Meta’s future performance.
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