"Meta's stock price fell 10% despite an impressive earnings per share of $10.44, significantly beating the consensus estimate of $6.66, with revenue growing 33% year over year."
"The sell-side remains optimistic, with 61 out of 67 analysts rating Meta as either Buy or Strong Buy, indicating strong confidence in the company's future performance."
"Investors are concerned about rising capital expenditures, which have been raised to a range of $125 billion to $145 billion, impacting the stock's immediate outlook."
Meta Platforms trades at $610.34, significantly below the Wall Street price target of $855.11, indicating a potential upside of 41%. Despite a 57% earnings beat, Meta's stock dropped 10% due to increased capex guidance. Analysts remain bullish, with 61 out of 67 rating it as Buy or Strong Buy. The company generates revenue primarily from advertising and is investing in AI infrastructure, which is expected to enhance ad revenue. The market reaction reflects concerns over rising costs and ongoing losses in Reality Labs.
Read at 24/7 Wall St.
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