BoA Securities Raises BofA Securities' PT to $775 from $765.

BoA Securities Raises BofA Securities' PT to $775 from $765.

BofA Securities has raised its price target for Meta Platforms Inc. (NASDAQ:META) to $775.00 from $765.00, while maintaining a Buy rating on the stock. The social media giant is currently trading at $720.92 and commands a market capitalization of $1.81 trillion. The financial strength of Meta, as evidenced by its 81.77% gross profit margin, has been noted by BofA Securities [1].

The adjustment follows Meta CEO Mark Zuckerberg’s announcement on Threads regarding the company's expansion into AI and data centers. Zuckerberg revealed that Meta is constructing several multi-gigawatt data centers, including a 1GW supercluster called Prometheus expected to come online in 2026, and a larger project named Hyperion planned to deliver at least 5GW of compute capacity by 2030. BofA Securities views these comments as indicating confidence in Meta’s revenue trajectory, while acknowledging the scale of investment suggests higher future capital expenditures and operating expenses for the company [1].

The firm also interprets Zuckerberg’s post as an effort to attract AI talent by positioning Meta as a center for AI innovation. This move is expected to be a primary focus during Meta’s upcoming earnings call. Additionally, recent analyst ratings from Citi, Piper Sandler, and Citizens JMP have shown optimism about Meta’s potential to overcome AI model challenges and enhance its AI capabilities [1].

Meta is set to release its second-quarter earnings on July 30, with Citi maintaining a Buy rating and a price target of $803.00. Despite a slight decline in Instagram Sponsored Reels ad load, Citi attributes this to more effective AI advertising tools, suggesting Meta is positioned to exceed expectations. Meanwhile, Piper Sandler reiterated an Overweight rating with a price target of $808.00, noting strong performance and projecting third-quarter revenue to reach $47 billion, marking a 16% year-over-year growth [1].

In other news, Meta has been actively recruiting AI talent, including two researchers from OpenAI, as part of its efforts to strengthen its AI initiatives. These hires are part of a broader strategy to enhance Meta’s AI capabilities, led by CEO Mark Zuckerberg [1].

Meanwhile, ByteDance is developing mixed reality goggles to compete with Meta’s upcoming product, scheduled for release in 2027. This move indicates a shift towards lighter, more consumer-friendly devices in the AR and VR market. As Meta continues its focus on AI and innovation, investors are closely watching these developments [1].

References:
[1] https://www.investing.com/news/analyst-ratings/meta-stock-price-target-raised-to-775-from-765-at-bofa-on-ai-expansion-93CH-4135209