J.P. Morgan has named Meta Platforms’ (META) stock among its top picks in the internet sector amid tough economic conditions. Consequently, five-star-rated analyst Doug Anmuth from J.P. Morgan reiterated his Buy rating on META stock at a price target of $725, implying a growth rate of 25% from current levels. However, despite JPMorgan’s support, META stock fell nearly 4% on Tuesday.
Additionally, the investment bank has identified Spotify Technology (SPOT), a leading music streaming service, as an equally good stock in this space. Overall, JPMorgan believes Meta and Spotify are well-equipped to navigate potential downturns as the internet sector faces macroeconomic challenges. SPOT stock dropped 4.6% on Tuesday.
JPMorgan Highlights Meta’s AI Dominance
JPMorgan named Meta as its top pick, citing its AI dominance and the upcoming Llama 4 launch, which is set to boost monetization and long-term growth.
Recently, Meta announced that Llama has surpassed one billion downloads. The company emphasized that open-sourcing AI models is key to ensuring global access to AI benefits, with each Llama download advancing that mission. Interestingly, the company earlier stated that it is training the Llama 4 on a massive computing cluster, larger than any publicly reported setup by competitors. Moreover, Llama 4 will play a key role in powering AI agents, featuring advanced reasoning capabilities.
Furthermore, the bank emphasized Meta’s massive advertiser base, noting that the company has tens of millions of advertisers, with over 80% of its ad revenue coming from performance and direct response (DR) advertising. It expects Meta’s 2025 revenue growth to be fueled by AI-driven optimizations, core improvements, and video unification efforts, including initiatives like Reels and Click-to-Message ads.
JPMorgan Stays Bullish on SPOT Stock
Anmuth also maintained a Buy rating on Spotify, expecting 2025 to be a pivotal year with accelerated execution across its services. The bank believes Spotify’s investments will boost user engagement and drive long-term monetization, justifying its premium valuation. It also forecasts 14% annual revenue growth for 2025-2026, alongside higher profitability.
Is Meta a Good Stock to Buy Now?
On TipRanks, META stock has a consensus Strong Buy rating among 48 Wall Street analysts. That rating is based on 44 Buys, three Holds, and one Sell assigned in the last three months. The average META price target of $763.71 implies a 31.14% upside from current levels.
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