From Nasdaq: 2024-04-25 18:20:00

Meta Platforms (NASDAQ: META) delivered strong first-quarter financial results, but the stock fell due to plans for increased spending on growth initiatives. Bernstein lowered the price target to $565 but maintained a buy rating, suggesting a potential buying opportunity.

While Meta’s revenue grew 27% and earnings per share increased 114%, higher expenses for AI initiatives could impact near-term earnings growth. The company plans to spend $35-40 billion on infrastructure to support AI development, aiming for long-term benefits for user engagement and business activity.

Although Meta’s near-term profitability may be affected by increased operating expenses, the company’s focus on long-term growth prospects remains unchanged. Market participants are likely to refocus on these prospects, leading to a recovery in the stock price towards analyst targets.

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Read more at Nasdaq: 1 Wall Street Analyst Thinks Meta Platforms Stock Is Going to $565. Is It a Buy?