Meta's Early AI Strength Leads Bullish Analysts to Lift Stock Price Targets

Meta Platforms (META) shares roseate Thursday aft analysts lifted their price targets for nan stock, citing affirmative signals surrounding nan tech giant's artificial intelligence (AI) opportunity.

Analysts said nan company's better-than-expected second-quarter results released Wednesday and nan early AI gains, eased concerns astir Meta's accrued spending to put successful nan technology.

Meta shares were up 4.5% astatine $496.05 successful caller trading, contributing to nan stock's astir 40% year-to-date gain.

Second-Quarter Strength Eases Investor Worries

UBS analysts said "the astir important development" from Meta's net call was that it eased lingering uncertainty astir nan banal aft AI spending worried investors aft nan company's erstwhile quarterly report.

The analysts said that nan company's third-quarter outlook indicates that Meta expects a beardown 2nd half of nan year. They besides said that CEO Mark Zuckerberg's remarks gave investors much clarity connected nan company's expectations for AI spending and monetization.

UBS connected Thursday lifted its Meta value target to $635 from $630.

Meta told investors that its AI tech is improving its proposal engines, offering early indicators that its important capital expenditures (CapEx) successful that guidance are benefiting nan company.

The institution lifted nan little extremity of its outlook for full-year spending to $37 cardinal from $35 cardinal and said accrued CapEx is expected successful nan adjacent year.

Bank of America Securities analysts said that Meta's "solid 4th and outlook propose durable AI advantages."

BofA, which calls Meta nan "top AI play successful user Internet," raised its value target connected nan banal to $563 from $550.