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BMO Capital sees rising risk of free cash flow burn at Meta Platforms

BMO Capital keeps a Market Perform rating and $450 price target on Meta Platforms while noting that based on the recent interview with its Head of Instagram, Adam Mosseri, the company is facing a rising risk of free cash flow burn from “more frequent” performance bonusus for content creators. Temu app download growth has also decelerated meaningfully to 35% in May vs. 162% and 196% in April and March, while the comps for the second half of 2024 also remain difficult given the outsized 2023 growth, the analyst tells investors in a research note.

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