Meta Platforms: Strong Buy Recommendation Amid AI Growth and Expanding Market Share

In a report released yesterday, Ken Gawrelski from Wells Fargo maintained a Buy rating on Meta Platforms (META – Research Report), with a price target of $652.00.

Ken Gawrelski has given his Buy rating due to a combination of factors including Meta Platforms’ continued strength in earnings, with an expectation of robust quarters ahead and solid forward guidance. His analysis indicates that Meta is increasingly viewed as a winner in artificial intelligence, which suggests potential for future growth. Despite anticipating the stock to be range-bound until the 2025 operational expenditure and capital expenditure guide is released, the expected continued margin expansion in 2025 due to aggressive investments in AI capabilities reinforces the positive outlook.

Furthermore, Gawrelski’s report suggests that Meta is gaining share in the travel advertising vertical, which is supported by positive return on investment signals from other companies in the industry. He notes that developments in Meta’s Reality Labs division could potentially indicate a moderation in development costs, while the introduction of new products like the budget Quest 3S headset could offset these savings. Based on these assessments, along with modest adjustments to revenue growth and operating expense forecasts due to foreign exchange considerations, Gawrelski has increased his price target for Meta Platforms, reinforcing his Buy recommendation.

In another report released yesterday, Pivotal Research also initiated coverage with a Buy rating on the stock with a $780.00 price target.

Based on the recent corporate insider activity of 332 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of META in relation to earlier this year.

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Meta Platforms (META) Company Description:

Social networking company Facebook, Inc. develops applications that enable people to connect through mobile devices, personal computers, and other devices. The firm’s products include Facebook, Instagram, Messenger, WhatsApp, and Oculus. Its revenue comes primarily from advertising. The company was founded by Mark Zuckerberg, Dustin Moskovitz, Chris R. Hughes, Andrew McCollum, and Eduardo P. Saverin on February 4, 2004 and is headquartered in Menlo Park+D9, CA.