Meta Platforms Increases AI Investment, Forecasts $70B to $72B Capital Spending for 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- User Growth Potential: Meta's social media platforms attract 3.5 billion users daily, allowing advertisers to spend billions annually on ads, showcasing its strong appeal in the digital advertising market.
- AI Strategic Expansion: Meta is not only developing chips and data centers for its own use but has also launched the large language model Llama, indicating an accelerated investment in AI, with capital spending expected to be driven by AI buildout in 2026.
- Advertising Innovation: By leveraging AI technology to quickly generate effective ads, Meta aims to enhance advertising clients' campaign performance, thereby driving increased ad spending and further boosting revenue potential.
- Long-term Investment Returns: Despite misconceptions about Meta's heavy investment in AI, the ongoing advancements in AI technology may allow Meta to diversify its revenue sources, potentially providing long-term gains for investors.
Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 620.800
Low
655.15
Averages
824.71
High
1117
Current: 620.800
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
