META’s AI Momentum and Strong Forecasts Keep Wall Street Bullish

Core Viewpoint - Meta Platforms, Inc. is recognized as a trending AI stock, with Bank of America maintaining a "Buy" rating and a price target of $900 ahead of its earnings report [1]. Financial Performance Expectations - Bank of America anticipates Meta's third-quarter revenue to reach $50.0 billion and earnings per share (EPS) of $7.30, surpassing consensus estimates of $49.5 billion and $6.69 respectively [2]. - The firm suggests that market expectations could be even higher, estimating revenue between $50.5 billion and $51.0 billion for the quarter [2]. Future Projections - For the fourth quarter of 2025, revenue is projected at $58.8 billion and EPS at $8.90, exceeding Street estimates of $57.3 billion and $8.12 [3]. - Meta is expected to guide fourth-quarter revenue between $55.5 billion and $59 billion [3]. Expense and Capital Expenditure Guidance - Ongoing infrastructure investments may lead Meta to narrow its full-year 2025 expense guidance to $115-117 billion from a previous range of $114-118 billion [4]. - The lower end of its capital expenditure forecast may be raised by $2 billion to a new range of $68-72 billion [4]. Investment Rationale - Meta is viewed as an investment in the growing social and mobile Internet usage, with exposure to AI/ML technology and potential long-term opportunities in the Metaverse [4].