In a report released today, Mark Shmulik from Bernstein maintained a Buy rating on Meta Platforms, with a price target of $870.00.
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Mark Shmulik has given his Buy rating due to a combination of factors including Meta Platforms’ impressive revenue growth and strong performance in AI-driven initiatives. The company has demonstrated a significant year-over-year revenue increase of 26%, largely attributed to its advancements in AI technology, which have enhanced both user engagement and advertising performance. This growth trajectory is expected to continue, as indicated by the company’s revenue guidance for the upcoming quarter, projecting a 16-22% increase.
Despite the positive outlook, Shmulik acknowledges the risks associated with Meta’s aggressive investment in AI, particularly the rising expenses and capital expenditures. These investments are aimed at establishing a leading frontier AI lab, which could potentially strain free cash flow. However, the expectation of continued revenue growth and the strategic focus on AI innovation underpin Shmulik’s confidence in Meta’s long-term potential, justifying the Buy rating.
Shmulik covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Snap. According to TipRanks, Shmulik has an average return of 25.3% and a 74.31% success rate on recommended stocks.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $910.00 price target.