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Investing.com - BofA Securities has reiterated its Buy rating on Meta Platforms Inc. (NASDAQ:META), currently trading at $732.17 with a market cap of $1.84 trillion, with a price target of $900.00, citing potential revenue upside driven by improving macroeconomic conditions and accelerating AI benefits. According to InvestingPro data, Meta maintains impressive gross profit margins of 82% and carries a "GREAT" financial health score.
The firm expects Meta to report third-quarter revenue of $50.0 billion and earnings per share of $7.30, compared to consensus estimates of $49.5 billion and $6.69, respectively. BofA notes that market expectations might be even higher, potentially between $50.5 billion and $51.0 billion for the quarter. With Meta’s earnings scheduled for October 29, InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report to prepare for the announcement.
Job posting data suggests continued investment at Meta, with third-quarter postings up 6% quarter-over-quarter. BofA estimates third-quarter operating margins will be down 49 basis points year-over-year to 42.3%.
For the fourth quarter of 2025, BofA projects revenue of $58.8 billion and earnings per share of $8.90, above Street estimates of $57.3 billion and $8.12. The firm anticipates Meta will guide fourth-quarter revenue between $55.5 billion and $59 billion, representing 15-22% year-over-year growth.
Given ongoing AI infrastructure investments, BofA expects Meta may narrow its full-year 2025 expense guidance to $115-117 billion from the previous $114-118 billion range, while raising the lower end of its capital expenditure forecast by $2 billion to a new range of $68-72 billion.
In other recent news, Meta Platforms Inc. announced plans to construct a new AI data center in El Paso, Texas, with an investment exceeding $1.5 billion. This facility will support Meta’s artificial intelligence initiatives, boasting a capacity of 1 gigawatt to power high-end computing chips. In a strategic move, Meta has also expanded its partnership with Arm Holdings to enhance AI efficiency across various computing layers. This multi-year agreement aims to combine Arm’s power-efficient technology with Meta’s AI innovation, promising improvements in performance and efficiency across Meta’s global platforms.
Cantor Fitzgerald has reiterated its Overweight rating on Meta Platforms, setting a price target of $920.00. The firm compared current investor sentiment toward Meta with past concerns about Alphabet, highlighting disruption risks. Additionally, Meta is set to introduce new parental controls to manage teenagers’ interactions with AI on its platforms. This feature allows parents to either completely disable one-on-one AI chats for teens or block specific AI characters. Lastly, Gene Munster from Deepwater Asset Management shared insights on Meta’s new AI glasses, the Ray-Ban Display, noting its affordability and potential despite adoption challenges.
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