From Financial Modeling Prep: 2025-04-28 10:13:00

Loop Capital lowered its price target on Meta Platforms (NASDAQ:META) from $900 to $695, maintaining a Buy rating due to concerns about weakening ad pricing pressure. The firm expects solid Q1 results but warns of a softer second-quarter outlook, with Chinese advertisers scaling back spending in the U.S. impacting ad prices.

About 40% of revenue from high-spending Chinese advertisers could be lost, impacting ad prices. Consumer engagement metrics are weakening, potentially leading to further budget reductions. Loop Capital estimates second-quarter revenue guidance for Meta to be between $40.5 billion and $43.0 billion, slightly below consensus.

Despite short-term pressures, Loop Capital sees long-term upside for Meta, justifying the Buy rating. The company remains a primary channel for customer acquisition, but caution is growing around short-term advertising dynamics. The analysts believe Meta’s guidance could still exceed market expectations, offering potential for growth.



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