Pivotal Research analyst Jeffrey Wlodarczak reiterated a Buy rating on Meta Platforms yesterday and set a price target of $930.00.
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Jeffrey Wlodarczak has given his Buy rating due to a combination of factors including Meta’s strong third-quarter results and optimistic future guidance. The company has demonstrated significant benefits from its investments in AI, which have led to increased engagement, higher ad impressions, and improved ad pricing. Despite the increased capital expenditures and operational expenses projected for the coming years, Wlodarczak sees these as strategic moves to capitalize on AI opportunities, which could yield substantial returns in the long term.
Meta’s decision to front-load spending on AI development is viewed as a calculated risk to seize potential advancements in artificial intelligence. The company’s large user base, extensive data resources, and move towards open-source AI development position it well to potentially lead in the AI space. Even if certain AI initiatives do not directly generate revenue, they are expected to enhance Meta’s content and advertising capabilities, driving further engagement and monetization. The analyst believes that these factors, combined with an attractive valuation, support a positive outlook for Meta’s stock.
Based on the recent corporate insider activity of 280 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.