5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - Stifel has reiterated its Buy rating on Meta Platforms Inc. (NASDAQ:META) while maintaining its price target of $900.00, well above the current stock price of $734. According to InvestingPro data, analysts’ targets range from $616 to $1,086, with Meta showing impressive gross profit margins of 82%.
The research firm identified Meta as a "top pick in the long term" and noted it "remains a consensus long" among investors, suggesting broad agreement on the company’s positive outlook.
Stifel indicated that current estimates for Meta appear reasonable, with the firm’s market checks highlighting "continued Instagram strength" as a key driver for the company’s performance.
The firm pointed to 2026 capital expenditures and related expenses as likely taking "center stage" in the upcoming quarterly report, as Meta typically provides early guidance for the following year during third-quarter results.
Despite potential concerns about spending, Stifel observed that investors have "grown a bit more comfortable with elevated levels of capex" in the near term, and that "downside risk from greater-than-expected guidance is reasonably limited."
In other recent news, Meta Platforms Inc. has been the focus of various significant developments. BofA Securities has maintained its Buy rating on Meta, setting a price target of $900. This decision is based on expectations of potential revenue growth, with third-quarter earnings projected at $50.0 billion and earnings per share at $7.30, surpassing consensus estimates. Truist Securities also raised its price target for Meta to $900, citing anticipated earnings in line with or slightly ahead of a 22% year-over-year revenue growth. Additionally, Meta has announced a $27 billion joint venture with Blue Owl Capital to develop the Hyperion data center campus in Louisiana, with Meta holding a 20% stake.
Meanwhile, the European Union has charged Meta over its handling of illegal content on Facebook and Instagram, marking the first such allegation under the EU’s online-content rules. The EU claims Meta does not provide adequate tools for users to flag illegal content or appeal content-moderation decisions. In another development, Meta is cutting approximately 600 jobs from its AI organization, affecting roles within its Facebook Artificial Intelligence Research unit and other AI teams. Despite these cuts, Meta continues its hiring efforts, focusing on other strategic areas.
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