Meta Platforms is shifting focus to artificial intelligence, with investments in talent and infrastructure driving revenue growth. Analysts anticipate strong second-quarter earnings, highlighting Meta’s aggressive AI development and recruitment efforts. Price target set at $775, with revenue and EPS estimates exceeding Street expectations for the upcoming quarters.

Analyst Justin Post forecasts Meta Platforms to report robust second-quarter revenue, alleviating concerns about high AI spending. Post raised revenue and EPS estimates above Street consensus, expecting 8% growth in ad revenue. Meta’s aggressive recruitment drive for AI professionals may lead to increased operating expenses but could contribute to future growth.

For the third quarter, Post projects Meta to generate $46.9 billion in revenue and $6.20 in EPS, outperforming Street estimates. The company is expected to benefit from AI-driven improvements in ad revenue, including automated campaigns and CRM integration. Despite ramping up AI hiring, Meta remains within its 2025 expense guidance.

Post sees Meta benefiting from new tax laws and R&D credits, potentially boosting 2025 free cash flow. The company is viewed as a long-term AI opportunity with substantial revenue upside as AI tools integrate into the ad stack. Full-year 2025 revenue and EPS forecasts exceed Street estimates, although investor expectations are high with the stock up 22% year-to-date.

META stock is trading higher by 0.55% to $716.50. Analysts are optimistic about Meta’s strong revenue potential amidst its AI investments. The company’s strategic pivot towards advanced AI development and talent recruitment is expected to drive future growth and earnings.

Read more at Yahoo Finance: Meta’s Strong Revenues May Offset Concerns Over Soaring AI Investments: Analyst