From Financial Modeling Prep: 2025-06-13 16:45:00

Citi maintains a bullish stance on Meta Platforms, with a Buy rating and $690 price target after a $14.3 billion investment in Scale AI. Meta gains a 49% stake in the AI firm, valuing it at $29 billion based on projected 2026 revenues of $4 billion—roughly 7 times enterprise value to sales.

The investment deepens Meta’s commitment to AI innovation, with Scale AI’s CEO joining Meta’s superintelligence team. Jason Droege, former Chief Strategy Officer, becomes interim CEO at Scale. Meta aims to accelerate AI technology development, including the upcoming Llama 4 model launch.

Meta’s investment in Scale AI is expected to boost its AI capabilities, aligning with its goal to create a foundational AI operating system. With a billion monthly active users for Meta AI, improved recommendation systems, and strong engagement rates, Citi sees Meta well-positioned to lead in the AI race. The partnership with Scale AI is seen as a strategic move to enhance Meta’s long-term AI capabilities.



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