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Investing.com - BofA Securities raised its price target on Meta Platforms Inc. (NASDAQ:META) to $900.00 from $775.00 while maintaining a Buy rating on the stock. The social media giant, currently trading at $695.21 with a market capitalization of $1.75 trillion, has shown impressive financial performance with a robust gross profit margin of 81.77%.
The price target increase reflects BofA’s higher 2026 earnings per share estimates and an increased price-to-earnings multiple of 27x, up from 26x previously, due to higher revenue growth expectations and artificial intelligence opportunities. According to InvestingPro data, Meta’s current P/E ratio stands at 26.43x, while the company has demonstrated strong revenue growth of 19.37% over the last twelve months.
BofA raised its 2025 revenue estimate by 5% to $199 billion and earnings per share by 11% to $29.73. For 2026, the firm increased revenue projections by 9% to $237 billion, expenses by 8% to $143 billion, and earnings per share by 12% to $32.63. InvestingPro analysis reveals that 10 analysts have recently revised their earnings upward for the upcoming period, with 12 additional ProTips available for subscribers.
The firm cited Meta’s strong third-quarter outlook as evidence that the company’s AI investments are delivering results, with multiple growth drivers for the second half of the year including increasing usage, AI ad stack integrations, and advertising opportunities in Threads and WhatsApp.
BofA continues to view Meta as one of the top AI beneficiaries in its coverage universe, noting the company is well-positioned to lead in an emerging agentic AI ecosystem.
In other recent news, Meta Platforms Inc. reported financial results for the second quarter of 2025 that exceeded expectations. The company achieved an earnings per share (EPS) of $7.14, surpassing the anticipated $5.85, marking a 22.05% surprise. Additionally, Meta’s revenue reached $47.5 billion, exceeding analyst forecasts by 6.26%. In further developments, Citizens JMP raised its price target for Meta Platforms to $900 from $750, maintaining a Market Outperform rating. The firm cited Meta’s unique position to capitalize on artificial intelligence due to its extensive data and user distribution. These recent developments highlight the company’s strong performance and potential future growth.
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