Despite macroeconomic concerns, JPMorgan said that Meta’s strong execution and AI opportunities should help the company’s results.
“We believe META remains well-owned driven by strong execution & growing AI monetization,” JPMorgan analysts wrote. “We’re bullish on AI-driven Ad improvements, video unification, WhatsApp Ads, Llama, & Meta AI.”
The bank said it believes investors expect Meta Platforms’ revenue to grow by about 13% year over year. Meeting or beating those expectations would likely boost the stock. It said that while macro factors are a concern, “tens of millions of advertisers should prove relative insulation.”
With regards to capex, JPMorgan expects the company to maintain its aggressive investment philosophy to capture the AI opportunity.
“Our $108B 2025 GAAP expenses is below Meta’s $114B-$119B guide as we expect META to rationalize expenses against lower growth,” JPMorgan said.
JPMorgan rates Meta Platforms at “Overweight” with a $610 price target.
