Analyst Upgrades Meta Stock to Buy, Citing AI Potential Amid Market Weakness
Meta Platforms (META) shares tumbled 14% post-Q3 earnings, compounded by a $16 billion tax charge linked to new U.S. legislation. Freedom Capital Markets analyst Saken Ismailov sees the sell-off as overdone, upgrading the stock to Buy with an $800 target.
Revenue outperformed expectations, fueled by resilient ad demand and AI-driven engagement tools across Facebook, Instagram, and WhatsApp. Early monetization signals from WhatsApp present incremental growth opportunities.
While heightened CAPEX for AI/data centers pressures margins, Ismailov argues the investments position Meta for long-term dominance in AI and the metaverse. 'The AI story is far from over,' he asserts, framing current spending as foundational for future monetization.