Stifel analyst Mark Kelley maintains $Meta Platforms (META.US)$ with a buy rating, and adjusts the target price from $663 to $692.
According to TipRanks data, the analyst has a success rate of 70.2% and a total average return of 30.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Meta Platforms (META.US)$'s main analysts recently are as follows:
Meta Platforms is signaling a marked rise in capital expenditures for 2025, yet the results concurrently underscored various factors that will showcase the benefits of these investments. Specifically, there is an anticipated substantial increase in revenue growth by 2024, estimated at approximately $28 billion. Additionally, there is a possibility for enhanced advertising revenue in 2026 and subsequent years, which could stem from the introduction of new products driven by generative AI technologies.
Following the release of Q3 results, there was a slight decline in share value as solid Q4 revenue projections were counterbalanced by anticipated considerable increases in capital expenditures and infrastructure costs in the coming years. Despite a shift in focus from immediate earnings to long-term prospects, the benefits of artificial intelligence have become evident in the core advertising business. With significant innovations in Meta AI, Llama, and other projects, the company's robust fundamental revenue growth and proven execution capabilities provide it with the latitude to invest substantially in AI. Revenue predictions for the years 2025 and 2026 have been moderately elevated post-earnings update.
Following Meta Platforms' Q3 revenue and EPS surpassing expectations and a Q4 outlook that aligns with current projections, there's been an increase in the 2025 revenue estimate by 3% and EPS by 6%. This adjustment accounts for an uptick in ad monetization, tempered slightly by increased R&D and capital expenditures.
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