Meta Platforms price target lowered to $480 from $535 at JPMorgan

JPMorgan lowered the firm’s price target on Meta Platforms to $480 from $535 and keeps an Overweight rating on the shares post the Q1 report. The shares traded down 15% in the after-market as revenue in both Q1 and Q2 outlook were a bit lower than expected, and management now projects higher total expenses and capex in 2024, largely due to increased investments in artificial intelligence, the analyst tells investors in a research note. However, Meta is more optimistic and ambitious on AI than ever, and believes it can become the leading AI company in the world, says the firm. Despite the heavy investments, JPMorgan still projects double-digit revenue and earnings growth in 2025 and 2026. It says Meta has a strong track record of driving returns on increased spending.