Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) has bagged a share price target upgrade from Wedbush analysts ahead of fourth-quarter figures and likely insight into its artificial intelligence plans.
Wedbush noted that investor focus had turned to capital expenditure guidance prior to the results on January 29, given accelerating investment in AI and related infrastructure.
“We estimate total expense growth of 14% [year on year] in 2025, accelerating modestly from 10% in 2024,” analysts said.
Overall capital expenditure of US$52.9 billion was expected as Meta continued to invest in future growth drivers, such as “deeper automation of advertiser creative, improvements in Meta AI, expansion of AI agents for business, and further integration of genAI”.
Risk around the figure was limited given the likes of recent announcements around headcount, which Wedbush said pointed to cost discipline despite AI investment.
“We think there is significant monetization opportunity ahead for Meta as the company brings generative AI features and content to its 3.3 billion daily active users.”
An ‘outperform’ rating was reiterated, while Wedbush upped Meta’s share price target from US$680 to US$700.
Estimates for fourth-quarter revenue of US$47.0 billion and operating income of US$20.1 billion remained unchanged.
This year, guidance for first-quarter revenue of US$42.4 billion and operating income of US$16.7 billion is expected.