Justin Post, an analyst from Bank of America Securities, reiterated the Buy rating on Meta Platforms (META – Research Report). The associated price target was raised to $765.00.
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Justin Post has given his Buy rating due to a combination of factors, primarily focusing on Meta’s strategic restructuring and investment in artificial intelligence. The creation of the Superintelligence Labs unit, led by prominent figures in the AI industry, signifies Meta’s commitment to becoming a leader in AI development. This restructuring, along with the hiring of top-tier AI talent, positions Meta to enhance its AI capabilities and potentially unlock new monetization opportunities.
While there are concerns about increased operating expenses due to these investments, Post believes that the potential revenue growth from AI-driven enhancements and new monetization strategies, such as a subscription model and B2B tools, outweighs these risks. Meta’s focus on driving revenue growth through platforms like Threads and WhatsApp, along with the anticipated launch of a fully automated ad platform, further supports the Buy rating. Despite some challenges in AI development, Meta’s strategic moves are expected to provide significant long-term benefits.
In another report released on June 27, Piper Sandler also reiterated a Buy rating on the stock with a $808.00 price target.