Analyst John Blackledge from TD Cowen maintained a Buy rating on Meta Platforms and decreased the price target to $810.00 from $875.00.
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John Blackledge has given his Buy rating due to a combination of factors including Meta Platforms’ strong financial performance and strategic advancements. The company’s third-quarter revenue and operating income exceeded expectations, driven by robust pricing and volume growth. Additionally, Meta’s management has provided an optimistic revenue guidance for the fourth quarter, which is above consensus estimates, highlighting the positive impact of AI-driven enhancements on engagement and monetization.
Moreover, the improvements in recommendation systems have significantly increased user engagement on platforms like Facebook and Instagram, contributing to higher overall impressions. The company’s AI ranking systems have also bolstered monetization efforts, leading to substantial revenue growth from automated ad solutions. Furthermore, Meta’s commitment to expanding its AI infrastructure and increasing capital expenditures reflects its strategic focus on becoming a leader in AI technology, which is expected to drive future growth.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 12.5% and a 56.30% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class C, and Netflix.
In another report released yesterday, Pivotal Research also maintained a Buy rating on the stock with a $930.00 price target.