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2025-07-31 17:45:57
Meta's Earnings Surpass Expectations: Is AI-Driven Advertising the Secret to Its Stock Price Soar? ⑴ Meta Platforms' earnings report released Wednesday indicated that its third-quarter revenue will significantly exceed analyst expectations. ⑵ This is primarily due to the strong boost from AI technology to its core advertising business. ⑶ In response to this positive news, Meta's stock price surged approximately 12% in pre-market trading, reaching $778.28. ⑷ This performance indicates the market's optimism about Meta's future growth prospects. ⑸ Brokerage firms are generally optimistic about Meta's AI development story, believing it is shifting from controversial to positive. ⑹ Canaccord Genuity rated Meta a "Buy" with a target price of $900, emphasizing that AI is a key driver of engagement, monetization, efficiency, and long-term growth. ⑺ Jefferies also gave it a "Buy" rating with a target price of $950, believing that Meta is well-positioned to capitalize on improving advertiser demand and the momentum of AI development. ⑻ TD Cowen set a target price of $875, noting that Meta is not overly concerned with the macroeconomic background, but rather highlights the strength of its digital advertising business and the strong spending resilience of American consumers. ⑼ Pivotal Research believes that after AI technology has driven significant revenue growth for the company, accelerating investment in AI is reasonable and necessary, with a target price of $930. ⑽ Scotiabank holds a "sector perform" rating with a target price of $685. While recognizing the strong revenue growth in the second quarter, it emphasizes that Meta needs to quickly increase spending to drive growth in the coming quarters.
