Meta Platforms price target lowered to $480 from $570 at Wedbush

Wedbush lowered the firm’s price target on Meta Platforms to $480 from $570 and keeps an Outperform rating on the shares. The firm notes Meta reported Q1 revenue and operating income ahead of Street estimates by 1% and 5%, respectively. Despite healthy Q1 results and Q2 revenue guidance that was roughly in line with consensus, shares were after-hours reflecting elevated investor expectations given strong digital ad trends in Q1, 2024 expense and capex guidance higher than the Street anticipated, and commentary from management indicating that the company is in the early stages of a multi-year investment cycle to support metaverse and AI initiatives that will likely take several years to scale adoption and monetization, Wedbush adds.