Erste Group downgraded Meta Platforms (META) to Hold from Buy. For 2026, the company expects a sharp increase in capital expenditures to support AI initiatives, driven primarily by infrastructure, compute, and cloud capacity needs, the analyst tells investors in a research note. While Q1 revenue is projected at $53.5B-$56.5B with strong growth, free cash flow is expected to decline due to elevated investment levels and remain below historical averages next year, the firm says.
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