Meta Stock Dip Presents Buying Opportunity Amid AI-Driven Growth
Meta Platforms' stock (META) has declined more than 20% from recent highs, driven by investor concerns over aggressive AI spending and slowing user growth. Despite the sell-off, analysts see the dip as a buying opportunity, citing the company's strong AI-powered advertising improvements and content recommendation algorithms.
Freedom Capital Markets upgraded Meta from Hold to Buy with an $800 price target, joined by Wolfe Research, Guggenheim, and TD Cowen in their bullish outlook. Meta's Llama AI models are enhancing ad targeting and user engagement, translating to higher ad revenue per user—a key growth driver overlooked in the recent pullback.