Meta Platforms (META – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Buy rating on the stock and has a $700.00 price target.
John Blackledge has given his Buy rating due to a combination of factors including Meta Platforms’ strong financial performance and strategic initiatives. The company’s first-quarter revenue and operating income exceeded consensus estimates by 2% and 14%, respectively, driven by robust advertising growth across various geographies. Additionally, management’s guidance for the second quarter revenue was 4% above consensus estimates, indicating healthy trends despite reduced ad spending from China-based advertisers in the US.
Management’s decision to increase the 2025 capital expenditure guidance by $5.5 billion reflects their commitment to accelerating AI infrastructure development, while slightly lowering the operating expense guidance. The improvements in Meta’s recommendation systems have led to increased user engagement on platforms like Facebook, Instagram, and Threads. These factors, combined with the raised revenue, EPS, and capex estimates, contribute to Blackledge’s positive outlook and Buy rating for Meta Platforms.
Blackledge covers the Communication Services sector, focusing on stocks such as Alphabet Class C, Snap, and Pinterest. According to TipRanks, Blackledge has an average return of 10.2% and a 53.43% success rate on recommended stocks.
In another report released today, UBS also maintained a Buy rating on the stock with a $650.00 price target.