In a report released yesterday, John Blackledge from TD Cowen maintained a Buy rating on Meta Platforms, with a price target of $875.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
John Blackledge has given his Buy rating due to a combination of factors that highlight Meta Platforms’ strong performance and future potential. The company’s second-quarter results exceeded expectations, with revenue and operating income surpassing consensus estimates by 6% and 20% respectively, driven by accelerating ad revenue growth. This growth is attributed to AI-driven enhancements that are improving ad performance, engagement, and pricing.
Management’s guidance for the third quarter also indicates continued strength, with revenue projections 9% above street estimates at the high end, supported by AI-driven performance improvements. Additionally, Meta’s increased focus on AI infrastructure is reflected in the raised capital expenditure and operating expense guidance for 2025 and 2026. These strategic investments are expected to sustain growth and enhance the company’s competitive edge, justifying the Buy rating.
Blackledge covers the Communication Services sector, focusing on stocks such as Meta Platforms, Netflix, and Alphabet Class C. According to TipRanks, Blackledge has an average return of 13.2% and a 59.76% success rate on recommended stocks.