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On Thursday, Truist Securities adjusted its price target for Meta Platforms Inc. (NASDAQ: NASDAQ:META), reducing it from $770.00 to $700.00, while reaffirming a Buy rating for the company’s shares. Currently trading at $501.74, Meta has seen an 8% decline over the past week. The adjustment comes ahead of the company’s earnings report, confirmed for April 30, 2025. According to InvestingPro analysis, Meta maintains strong financial health with more cash than debt on its balance sheet, earning a "GREAT" overall financial health score. Truist Securities’ analyst cited the potential impact of tariffs, particularly on Chinese direct-to-consumer imports and a softening U.S. consumer market, as reasons for the revision.
Meta Platforms is anticipated to report first-quarter revenue in line with consensus estimates, targeting the higher end of its guidance at $41.7 billion, which would represent a 14% year-over-year increase. The company has demonstrated strong performance with $164.5 billion in revenue over the last twelve months and impressive gross profit margins of 81.7%. InvestingPro subscribers have access to 12 additional key insights and a comprehensive Pro Research Report, offering deeper analysis of Meta’s financial position and growth prospects. For the second quarter of 2025 and the full year, Truist Securities has lowered its growth estimates due to the aforementioned tariff impacts.
The firm predicts that Meta Platforms management will provide second-quarter revenue guidance in the range of $41.5 billion to $44 billion, reflecting a growth of 6% to 13%. Despite these adjustments, the company is expected to maintain its operational expenditure and capital expenditure guidance for the year unchanged.
Truist Securities remains positive on Meta Platforms, highlighting the company’s continued investment in artificial intelligence. These investments are said to enhance ranking and recommendation results for users and advertisers, contributing to ad spending on Meta’s platforms that surpasses industry averages. The analyst’s comments reflect a belief in the underlying strength of Meta’s business model and technological advancements, despite the external economic challenges.
In other recent news, Meta Platforms has been the focus of several analyst reports and regulatory comments. Cantor Fitzgerald revised their price target for Meta Platforms to $624 from $790, maintaining an Overweight rating, and highlighted concerns about tariffs affecting future revenue projections. The firm expects Meta’s first-quarter 2025 earnings to align with the higher end of guidance, while second-quarter guidance may not meet consensus expectations. Meanwhile, Mizuho (NYSE:MFG) noted reduced ad spending by Chinese advertisers due to ongoing tariff issues, and mentioned competitive pressures from companies like OpenAI. The Federal Trade Commission (FTC) Chair labeled Meta as a ’monopoly’ amidst a rise in merger and acquisition activity, indicating ongoing regulatory scrutiny. BofA Securities maintained a Buy rating with a $640 price target, discussing potential legal challenges and the possibility of a settlement that could affect Meta’s operations. Investors are paying close attention to these developments, as they could have significant implications for Meta Platforms’ financial performance and strategic direction. Additionally, Meta was among the Magnificent Seven stocks experiencing a positive trend in premarket trading due to a potential pause in auto tariffs.
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