Oppenheimer analyst Jason Helfstein downgraded Meta Platforms (META) to Perform from Outperform without a price target following the Q3 report. The company’s “significant” investment in superintelligence despite the unknown revenue opportunity mirrors its Metaverse spending in 2021 and 2022, the analyst tells investors in a research note. Oppenheimer believes investors will struggle to rationalize the stock’s price-to-earnings multiple until there is visibility into 2027, since Meta’s “aggressive” revenue growth is offset by high spending. It points out that Alphabet (GOOGL) (GOOG) shares offer a “predictable earnings at a reasonable” valuation. Both companies trading at same multiple and search could outgrow Meta at some point in 2026, the firm contends.
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