Analyst John Blackledge of TD Cowen maintained a Buy rating on Meta Platforms, retaining the price target of $810.00.
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John Blackledge has given his Buy rating due to a combination of factors that highlight Meta Platforms’ strategic cost management and potential for earnings growth. One of the key reasons is Meta’s plan to significantly reduce its Metaverse-related expenses, which are part of the Reality Labs segment. These cost reductions are expected to be around 30% by 2026, potentially resulting in savings of $5 billion to $6 billion. This move is seen as a way to partially offset the increased spending on AI infrastructure, which is a critical area of investment for Meta.
Furthermore, the anticipated cost savings from the Metaverse segment could lead to a 5% to 7% increase in Meta’s earnings per share estimates for 2026. This strategic reallocation of resources suggests that Meta is focusing on areas with higher growth potential, such as AI, while managing costs in segments that have not met initial competitive expectations. Overall, these financial adjustments and strategic shifts are viewed positively, supporting the Buy rating for Meta’s stock.
In another report released today, Arete Research also upgraded the stock to a Buy with a $718.00 price target.