"Meta Platforms Inc (NASDAQ: META) is accelerating artificial intelligence-driven ad demand across its core platforms - Facebook, Instagram, Threads, and WhatsApp. The company's expanding AI infrastructure, including automated ad tools, custom silicon, and next-generation data centers, is expected to power double-digit revenue growth into year-end. Bank of America Securities analyst Justin Post maintained a Buy rating on Meta with a price forecast of $900."
"The analysts forecast third-quarter 2025 revenue of $50 billion and EPS of $7.30. That's above the Street's $49.5 billion and $6.69 estimates. Post expects Meta's ad revenue to rise 23% year over year and outpace Alphabet's (NASDAQ: GOOGL) 13% growth. The company expects to maintain an operating margin near 42% (down 49bps year-over-year compared to Google's down 259bps Y/Y). Looking ahead, Post projects fourth-quarter revenue of $58.8 billion and EPS of $8.90, topping consensus of $57.3 billion and $8.12,"
"The analyst anticipates Meta may tighten its 2025 expense guidance to $115-$117 billion and raise the lower end of its capex range to $68-$72 billion to support expanding AI infrastructure. He highlights Meta's continued AI buildout - including automated ad platforms, custom silicon, and data center investments - as key long-term growth drivers. Post sees AI improving ad targeting, CRM integrations, and content recommendations. New initiatives, such as Meta Business AI, could unlock incremental ad demand from smaller businesses in 2026, he added."
Meta Platforms is accelerating AI-driven advertising across Facebook, Instagram, Threads, and WhatsApp while expanding automated ad tools, custom silicon, and next-generation data centers to support growth. Bank of America Securities maintained a Buy rating with a $900 price forecast and projects third-quarter 2025 revenue of $50 billion and EPS of $7.30, above consensus. Ad revenue is forecast to rise 23% year over year, surpassing Alphabet's projected 13% growth, with operating margins near 42%. Fourth-quarter revenue is projected at $58.8 billion with $8.90 EPS. Expense guidance may be tightened to $115-$117 billion and capex raised to $68-$72 billion to fund AI infrastructure. New products like Meta Business AI could drive incremental small-business ad demand in 2026.
Read at Benzinga
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