Wall Street analysts rerated Meta Platforms Inc (NASDAQ:META) after the company said that it is considering cutting up to 30% of its 2026 Metaverse budget, primarily targeting the Quest virtual reality unit and Horizon Worlds, which account for the bulk of metaverse-related investment.JPMorgan analyst Doug Anmuth maintained an Overweight rating on Meta with a price forecast of $800.Bank of America Securities analyst Justin Post reiterated a Buy rating on Meta with a price forecast of $810.Also Read: Meta Pl ...

Core Insights - Meta Platforms Inc is accelerating AI-driven ad demand across its platforms, including Facebook, Instagram, Threads, and WhatsApp, with expectations of double-digit revenue growth into year-end [1] Revenue and Earnings Projections - Bank of America Securities analyst Justin Post forecasts third-quarter 2025 revenue of $50 billion and EPS of $7.30, exceeding the Street's estimates of $49.5 billion and $6.69 [2] - For the fourth quarter, Post projects revenue of $58.8 billion and EPS of $8.90, surpassing consensus estimates of $57.3 billion and $8.12, with a likely company forecast of $55.5–$59 billion reflecting up to 22% year-over-year growth [4] Advertising Revenue Growth - Meta's ad revenue is expected to rise 23% year-over-year, outpacing Alphabet's 13% growth, while maintaining an operating margin near 42% [3] AI Infrastructure and Long-term Growth - The company is investing in AI infrastructure, including automated ad platforms, custom silicon, and data center investments, which are seen as key long-term growth drivers [5] - New initiatives like Meta Business AI could unlock additional ad demand from smaller businesses by 2026 [5] Expense and Capital Expenditure Guidance - Analyst anticipates Meta may tighten its 2025 expense guidance to $115–$117 billion and raise the lower end of its capex range to $68–$72 billion to support expanding AI infrastructure [4] Stock Valuation - Despite heavy spending, the stock is considered attractively valued at 23 times 2026 EPS [6]