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Investing.com - BMO Capital maintained its Market Perform rating and $710 price target on Meta Platforms Inc. (NASDAQ:META) following the company’s third-quarter results. The social media giant is currently trading at $751.67, near its 52-week high of $796.25, with a market capitalization of $1.89 trillion.
Meta delivered strong performance in the third quarter of 2025, with revenue and adjusted EBITDA exceeding consensus expectations by approximately 3.5% and 4.5% respectively. InvestingPro data shows the company maintains impressive gross profit margins of 81.97% and has achieved revenue growth of 19.37% over the last twelve months.
The social media giant announced plans to consolidate its artificial intelligence systems, following recent model consolidation that has already improved advertisement quality and conversion rates.
BMO Capital noted that increasing capital expenditure and operating expense guidance continue to present headwinds for Meta, as investors question the long-term return on investment of the company’s expanding AI spending.
Meta also indicated it faces growing legal and regulatory challenges in both the European Union and United States, which could significantly impact its business operations and financial results.
In other recent news, Meta Platforms Inc. reported solid third-quarter results, surpassing revenue expectations and beating earnings per share estimates when excluding a one-time tax charge. The company also offered slightly improved guidance for fourth-quarter revenue at the midpoint. In light of these developments, several analysts have adjusted their price targets for Meta. Stifel reduced its price target to $875 from $900, maintaining a Buy rating, while BofA Securities lowered its target to $810 from $900, citing limited earnings per share growth outlook and free cash flow pressure expected in 2026. Mizuho adjusted its price target to $815 from $925, expressing concerns over Meta’s increased spending flexibility without sufficient upside to the core business. KeyBanc also lowered its price target to $875 from $905, maintaining an Overweight rating, following Meta’s earnings call, which raised concerns about future capital and operating expenditures. Meanwhile, Pivotal Research reiterated a Buy rating with a $930 price target, noting the positive impact of artificial intelligence on engagement and ad metrics.
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