Mizuho Analyst Bullish on Meta and Alphabet, Highlights AI-Driven Growth

Mizuho analyst Lloyd Walmsley has initiated coverage of Meta Platforms (META) and Alphabet (GOOGL) with Buy ratings, signaling strong confidence in their growth trajectories. Meta Platforms earns a 'Top Pick' designation with a $925 price target, hailed as Mizuho's preferred long-term internet holding.

Walmsley emphasizes Meta's unrivaled positioning in artificial intelligence and machine learning, citing its transformative impact on user engagement and ad products. The company's 3.5 billion daily active users provide a formidable platform for AI integration, free from the structural challenges facing competitors like Google.

Projections suggest Meta's ad business will outpace industry peers, growing at 18% annually through 2027. Significant investments in augmented reality, VIRTUAL reality, and generative AI are expected to drive Fiscal 2027 ad revenue to $265 billion, 3% above consensus estimates.