Meta Platforms: Strong Buy Rating Driven by AI Innovations and Robust Financial Performance

In a report released today, Saiyi He from CMB International Securities maintained a Buy rating on Meta Platforms (META – Research Report), with a price target of $760.00.

Saiyi He has given his Buy rating due to a combination of factors including Meta Platforms’ strong financial performance and strategic focus on AI development. The company’s revenue and operating income for the first quarter of 2025 exceeded expectations, driven by effective cost management and robust ad revenue growth. This growth is supported by AI-enhanced recommendation systems, which have significantly increased user engagement and ad performance across Meta’s platforms.
Furthermore, Meta’s commitment to investing in AI is evident in its increased capital expenditure guidance, aimed at enhancing data centers and supporting AI advancements. The company is also exploring key growth opportunities in AI, such as improving ad ROI and expanding business messaging. Despite short-term challenges from macroeconomic uncertainties and reduced ad spending in certain regions, the long-term outlook remains positive, bolstered by AI-driven innovations and monetization strategies.

According to TipRanks, He is a 4-star analyst with an average return of 5.0% and a 43.15% success rate. He covers the Communication Services sector, focusing on stocks such as Baidu, Meta Platforms, and Alphabet Class C.

In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $690.00 price target.