Meta received a Buy rating with a $900 price target, implying about 21.8% upside. Alphabet's price target was raised to $210, implying roughly 1.4% downside and reflecting a Hold stance. Meta's substantial AI investments have driven stronger impressions and price growth, with North American impression growth accelerating to 9% year over year. Google recorded a 4% year-over-year increase in paid clicks, easing short-term AI disruption concerns. Meta raised fiscal 2025 capex by up to $2 billion and forecasts fiscal 2026 capex near $100 billion. Meta holds about 27% of the digital advertising market and aims to catch up to Google by 2026.
Shmulik reiterated his "Buy" rating on META stock, while keeping his "Hold" rating on GOOGL. He has a $900 price target on META, implying 21.8% upside potential. At the same time, he raised GOOGL's price target from $185 to $210, implying 1.4% downside potential. Shmulik is a five-star analyst on TipRanks, ranking #315 out of 10,004 analysts tracked. He boasts a 79% success rate and an average return per rating of 28.20%.
Shmulik highlighted Meta's massive AI investments and its robust AI efforts. He believes META is the only consumer AI play that is actually delivering results and whose "core AI gains continue." He also noted that both impressions and price growth were strong, driven by AI initiatives that enhanced consumer engagement and improved advertiser effectiveness. In North America, Meta's impression growth accelerated to 9% year over year, driven by AI-powered features that enhanced user engagement.
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