What Analysts Think of Meta Stock Ahead of Earnings | Global News Avenue

MetaPlatform (Yuan) will report its fourth-quarter results after the end of Wednesday, with analysts largely bullish on the tech giant building out strong capabilities in 2024 as AI Investments indicated Pay off some signs.

Meta’s shares are up nearly two-thirds last year “driven by rising revenue, good cost discipline and optimism about AI capabilities,” Bank of America analysts said Thursday. The analysts added that they “remain positive on the stock in 2025,” given AI’s increased contribution to advertising revenue, growing messaging revenue and recent labor declines.

BOFA reiterated a “buy” rating and raised its price target on the stock to $710 from $660. Overall, 22 of the 28 analysts covering the metadata tracking the visible alpha have a Buy or equivalent rating, while the remaining two have a Hold rating. Their consensus price target is around $686, which is about 6% higher than the stock’s closing price on Friday.

Analysts expect revenue and earnings growth – and higher AI spending

Wall Street expects Yuan to report fourth-quarter revenue of $47.02 billion, up 17% Year-on-year. Earnings are expected to increase to $17.52 billion, or $6.75 a share, from $14.02 billion, or $5.33 a share, and would rise even as Meta ramps up spending on AI.

On Friday, CEO Mark Zuckerberg announced investment plans $60 billion to $65 billion in capital spending this yearfrom the estimated $38 billion to $40 billion in 2024As the tech giant expands its AI efforts.

Jefferies analysts recommended last week short-lived The Tiktok ban in the United States earlier this month may also be “Potentially increased headwinds“During the quarter, conversations with teenagers revealed that the ban drove some Tiktok users to Instagram reels.

Shares of Meta climbed 1.7% in Friday’s session, reaching an all-time high of $647.49, a gain of nearly 65% ​​in the past 12 months.