UBS Group has released research reports pointing out that Meta (META.US) is expected to significantly increase capital expenditure in 2025. It is forecasted that investments can drive product expansion, eventually achieving monetization and bringing in realized returns. With accelerating revenue growth and technological progress, it is believed that the company's long-term growth potential remains strong. Accordingly, the earnings per share estimates for 2025 and 2026 are raised by 5% each to reflect an expected annual revenue growth of 4% and 7% during the period, helping to offset the increase in costs.

The bank expects that the launch of new products will add potential to Meta's advertising revenue growth in 2026 and beyond, including incremental revenue from generative AI. The target price is revised from $690 to $719 with a 'buy' rating.