Meta Platforms price target lowered to $800 from $850 at Guggenheim

Guggenheim analyst Michael Morris lowered the firm’s price target on Meta Platforms (META) to $800 from $850 and keeps a Buy rating on the shares. Meta delivered “strong” Q1 results and the firm believes core advertising growth “remains compelling and management has earned investor confidence in the capital spend strategy.” However, unlike Alphabet (GOOG) (GOOGL), where capex returns are measurable via incremental cloud revenue, the payoff from Meta’s AI spend remains largely embedded in the existing ad P&L rather than producing a standalone revenue stream, adds the analyst, who cites a higher expense outlook for lower 2027 earnings and cash flow estimates.