AI Cycles Support Long-Term View on META Despite Near-Term Pressure

Group 1: Company Insights - Meta Platforms, Inc. has had its price target lowered to $835.00 from $875.00 by KeyBanc, while maintaining an Overweight rating, anticipating benefits from AI product cycles in 2026 [1] - Meta's shares are currently trading at their widest P/E discount to Alphabet since 2002, reflecting investment and ROI concerns [2] - KeyBanc projects Meta's operating expenses to reach $157 billion and capital expenditures at $120 billion, with investor concerns about spending levels exceeding $160 billion [4] Group 2: Revenue Forecasts - KeyBanc expects revenue forecasts for both Meta and Alphabet to remain ahead of consensus estimates, with 2026E/2027E revenue estimates for GOOGL at 1%/3% and META at 1%/2% above consensus [3] - The firm sees product momentum in the spring supporting stronger revenue growth for Meta into 2027 [4]