Meta (NASDAQ:META) beat expectations in Q4, with revenue rising 21% year-over-year to $48.39 billion, surpassing forecasts of $46.98 billion. GAAP EPS hit $8.02, exceeding estimates by $1.26. However, Q1 revenue guidance of $39.5B-$41.8B came in slightly below consensus expectations.
Meta forecasts full-year expenses between $114B and $119B, with infrastructure leading costs. Capital expenditures are set at $60B-$65B, up from $52B, largely to support AI initiatives. Morgan Stanley highlighted Meta’s AI-powered ad growth, maintaining its $660 PT, with a bull case of $900.
RBC raised its target to $800, citing AI leadership. Barclays sees growth but warned of rising costs, lifting its PT to $705. Bank of America raised its PT to $765, highlighting AI’s revenue impact. Benchmark upgraded to buy with an $820 PT, citing AI engineering potential. Despite rising infrastructure costs, analysts remain bullish on Meta’s AI-driven ad business and expansion efforts, seeing long-term growth potential.
This article first appeared on GuruFocus.
Terms and Privacy Policy