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Investing.com - Benchmark has reiterated its Buy rating for Meta Platforms Inc. (NASDAQ:META), now valued at $1.89 trillion, with a price target of $890.00, according to a recent analyst note. The stock currently trades near its 52-week high of $796.25, with InvestingPro data indicating the stock is trading above its Fair Value.
The firm highlighted Meta’s return on invested capital (ROIC) fluctuations in recent years, noting alternating periods of "booming profitability" and "heavy investment years" in areas such as Reality Labs and AI infrastructure. Recent InvestingPro data shows Meta maintaining strong profitability with a 30% ROIC and impressive 82% gross margins.
Benchmark estimates that Meta is positioned to capture an additional 150 basis points of U.S. digital advertising market share in 2025, potentially reaching 24.5% total U.S. share, which would match its peak levels from 2021.
The analysis acknowledges Meta’s current "elevated expense environment" while pointing to the anticipated launch of hands-free small and medium-sized business (SMB) advertisements in 2026 as a potential "monetization wildcard."
Benchmark’s assessment weighs these growth factors against what it describes as "varying capex trajectories," as Meta continues its significant capital expenditure investments.
In other recent news, Meta Platforms Inc. has been in the spotlight with several significant developments. Truist Securities raised its price target for Meta to $900, maintaining a Buy rating, citing expectations for earnings to align with or slightly exceed a 22% year-over-year revenue growth. Stifel also reiterated a Buy rating with a $900 price target, highlighting Meta as a long-term top pick. DA Davidson maintained its Buy rating and $825 price target, expecting Meta to outgrow Google’s advertising revenue despite potential growth deceleration.
Meanwhile, the European Union has charged Meta over its handling of illegal content on Facebook and Instagram, marking a first under the EU’s online-content rules. The EU alleges that Meta does not provide adequate tools for users to flag illegal content or appeal content-moderation decisions. Additionally, Meta plans to cut approximately 600 jobs from its Superintelligence Labs AI unit, affecting roles in various AI-related teams. Despite these cuts, Meta continues its hiring efforts, indicating ongoing strategic adjustments.
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