Meta Platforms price target lowered to $550 from $588 at Stifel

Stifel lowered the firm’s price target on Meta Platforms to $550 from $588 and keeps a Buy rating on the shares. Meta reported a “solid” Q1, but the Q2 revenue outlook midpoint was slightly below consensus, notes the analyst, who believes shares were mostly under pressure as a result of upward revisions to 2024 expenses and capex with incremental AI infrastructure costs. The biggest question is whether Meta can meaningfully monetize AI over time to justify the investment cycle and though “history suggests” it can, the firm says it is likely to “take a bit to have a definitive answer.”