BofA Securities analyst Justin Post has reaffirmed a Buy rating on Meta Platforms Inc with a price target of $710. Despite recent adjustments to his estimates due to US dollar appreciation, Post's revenue and EPS predictions for Q4 suggest solid performance, benefiting from eCommerce and ad innovations. While he remains cautious about expenses, he anticipates strong growth factors including improved AI and CRM integration. Concerns around revenue deceleration in early 2025 due to currency pressures are noted, alongside significant capex investments aimed at AI infrastructure.
Given recent news of 5% layoffs, ramping depreciation due to capex, and some FX savings, Post expects fiscal 2025 expense guidance to be clearer.
Post's checks suggest Meta could benefit from eCommerce sales and strength in shopping ads, improving AI models for ad targeting, and new CRM integration.
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