Meta stock remains a Buy at BofA despite AI reorganization plans

Published 19/08/2025, 05:26
© Reuters.

Investing.com - Bank of America Securities maintained its Buy rating and $900.00 price target on Meta Platforms Inc. (NASDAQ:META), aligning with the broader analyst consensus. According to InvestingPro data, analysts’ targets range from $658 to $1,086, with 32 analysts recently revising earnings estimates upward despite reports of another restructuring of the company’s artificial intelligence division.

According to The Information, Meta is planning a fourth overhaul of its AI efforts in just six months, with plans to divide its Superintelligence Labs into four distinct groups.

The proposed restructuring would create a new "TBD Lab," a products team focused on the Meta AI assistant, an infrastructure team, and the Fundamental AI Research lab dedicated to long-term research.

BofA Securities noted that while the frequency of reorganizations might raise concerns about Meta’s AI execution, the AI opportunity remains in early stages, and the company has demonstrated a strong track record of successfully launching new services.

The research firm continues to view Meta as well-positioned in the AI space due to its massive user base and technological infrastructure, factors that support maintaining the Buy rating.

In other recent news, Meta Platforms is planning a fourth restructuring of its artificial intelligence efforts within six months. This restructuring will divide Meta Superintelligence Labs into four distinct groups, focusing on different AI aspects, including a new lab known as TBD Lab. Additionally, Meta introduced DINOv3, a cutting-edge self-supervised vision AI model that excels in various visual tasks without needing labeled data. The model was trained on 1.7 billion images and has been significantly scaled compared to its predecessor. Cantor Fitzgerald has maintained its Overweight rating on Meta Platforms, with a price target of $920, citing expected increases in capital expenditure and depreciation expenses over the next few years. Meanwhile, OpenAI employees are set to sell $6 billion in shares, valuing the company at $500 billion, with investors like Thrive Capital and SoftBank (TYO:9984) Group Corp. involved. In other developments, Russian authorities are moving to partially restrict calls on Telegram and WhatsApp, following legislation for a state-backed messaging app.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.