Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - BofA Securities has raised its price target on Meta Platforms Inc. (NASDAQ:META) to $775.00 from $765.00 while maintaining a Buy rating on the stock. The social media giant, currently trading at $720.92 and commanding a market capitalization of $1.81 trillion, has demonstrated impressive financial strength with an 81.77% gross profit margin. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value.
The adjustment follows Meta CEO Mark Zuckerberg’s announcement on Threads that the company is constructing several multi-gigawatt data centers, including a 1GW supercluster called Prometheus expected to come online in 2026, and a larger project named Hyperion planned to deliver at least 5GW of compute capacity by 2030.
Zuckerberg stated in his post: "We’re going to invest hundreds of billions of dollars into compute to build superintelligence. We have the capital from our business to do this."
BofA Securities views these comments as indicating confidence in Meta’s revenue trajectory, while noting the scale of investment suggests higher future capital expenditures and operating expenses for the company.
The firm also interprets the CEO’s post as an effort to attract AI talent by positioning Meta as a center for AI innovation, and expects AI investment to be a primary focus during Meta’s upcoming earnings call.
In other recent news, Meta Platforms Inc. is set to release its second-quarter earnings on July 30, with Citi maintaining a Buy rating and a price target of $803.00. Despite a slight decline in Instagram Sponsored Reels ad load, Citi attributes this to more effective AI advertising tools, suggesting Meta is positioned to exceed expectations. Meanwhile, Piper Sandler reiterated an Overweight rating with a price target of $808.00, noting strong performance and projecting third-quarter revenue to reach $47 billion, marking a 16% year-over-year growth. The firm also highlighted Meta’s AI investments as a reason for raised future estimates.
Additionally, Citizens JMP reaffirmed a Market Outperform rating, expressing optimism about Meta’s potential to overcome AI model challenges by expanding its GPU capacity and AI team. In a related development, Meta has been actively recruiting AI talent, including two researchers from OpenAI, as part of its efforts to strengthen its AI initiatives. These hires are part of a broader strategy to enhance Meta’s AI capabilities, led by CEO Mark Zuckerberg.
Meanwhile, ByteDance is developing mixed reality goggles to compete with Meta’s upcoming product, scheduled for release in 2027. This move indicates a shift towards lighter, more consumer-friendly devices in the AR and VR market. As Meta continues its focus on AI and innovation, investors are closely watching these developments.
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