Arete downgraded Meta Platforms to Neutral from Buy with a price target of $676, down from $732. The firm says the company is "lagging" on AI monetization and its "surging" investments will lead to margin declines. Meta's commitment to an open-ended investment cycle means the end of efficiency gains it achieved since 2022, the analyst tells investors in a research note. Arete argues Meta's expenses are rising faster than sales and that it "lacks the deep pool" of third party demand that Google and Amazon have for cloud capacity.
