Meta Platforms CEO Mark Zuckerberg announced plans to invest hundreds of billions in AI infrastructure, aiming for superintelligence alongside building multigigawatt data centers. Following this announcement, Bank of America analyst Justin Post raised the price target for Meta stock and highlighted confidence in revenue growth. Despite a slight decrease in 2026 earnings estimates due to increased R&D costs, Post believes AI investments will enhance advertising capabilities. The upcoming earnings call is expected to emphasize AI investments and justify increased spending for future returns.
"We view the comments as a sign of confidence in Meta's revenue trajectory, while the scale of investment implies higher future capital expenditures and operating expenses."
"We expect AI investment to be a top focus area on the upcoming earnings call, and Meta likely needs to make a case for strong AI returns to drive price-to-earnings multiple expansion."
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