AI Is Powering Every Part of Meta’s Ad Business, Say Analysts

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks on Analysts’ Radar Right Now. On July 18, Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating on the stock with a $750.00 price target. The firm believes that artificial intelligence is benefiting every aspect of the company’s core advertising business.

“Stocks often do not work when going through an investment cycle but AI benefits every aspect of Meta’s core advertising business. AI makes Meta’s content more engaging, creating more ad impressions, and making its ads more relevant, increasing click-through rates and conversions. To that end, we believe more compute and access to better models can help to sustain revenue growth and we moderately increase our growth estimates for Meta.”

AI Is Powering Every Part of Meta’s Ad Business, Say Analysts

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“While we are incrementally cautious on Meta given this investment cycle, we maintain our Market Outperform rating and unchanged price target of $750 based on `~26x 2026E GAAP EPS OF $28.56. With Meta under earning given its investments in Facebook Reality Labs and XR/VR, its best in-class advertising platform that continues to improve with AI, and optionally with Meta AI glasses, we justify Meta’s premium P/E valuation relative to Google and the market overall.”

While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.