Wei Fang, an analyst from Mizuho Securities, has initiated a new Buy rating on Meta Platforms (META).
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Wei Fang has given his Buy rating due to a combination of factors, primarily focusing on Meta Platforms’ strong position in leveraging AI and machine learning technologies. Meta is uniquely positioned to transform its consumer products, user engagement, and advertising operations through AI, without facing the structural risks that competitors like Google encounter. The company’s ability to sustain faster growth in its advertising business, projected at 18% from 2024 to 2027, is expected to fund significant investments in augmented reality, virtual reality, and generative AI, leading to a projected advertising revenue of $265 billion by 2027.
Furthermore, Meta’s financial discipline is evident in its expansion of operating income and its substantial investments in research and development. The company has demonstrated a balance between growth investments and operational efficiency, which positions it to capitalize on emerging opportunities while maintaining profitability. Positive feedback from the advertising community, improved return on ad spend, and successful adoption of AI/ML tools further support the Buy rating, as these factors contribute to Meta’s ability to sustain top-line growth and enhance shareholder value.
According to TipRanks, Fang is a 4-star analyst with an average return of 20.4% and a 70.83% success rate. Fang covers the Communication Services sector, focusing on stocks such as Meta Platforms, Zillow Group Class A, and Snap.
In another report released today, Citizens JMP also reiterated a Buy rating on the stock with a $900.00 price target.