BofA Reiterates Buy Rating on Meta Platforms (META) Cites AI Strategy a Key Growth Catalyst

Meta Platforms, Inc. (NASDAQ:META) ranks among our list of Top Stocks to Buy and Hold for the Long Term. Recently, on June 11, Bank of America Analyst Justin Post reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) with a price target of $835. The firm noted that Meta’s expanding AI strategy is a key catalyst for its long-term growth.

​The analyst noted that the heavy AI capital expenditure is not merely a cost, but is strengthening the company’s AI model development while also improving ad targeting and content recommendations. Analyst Post noted that this is already resulting in higher user engagement and increased advertisement revenue. He also expects the company to develop new revenue streams ahead, such as subscriptions, enterprise solutions, and AI business agents, which have the potential to result in additional monetization over time.

​While Post acknowledges execution risks and a competitive landscape, it notes that investor sentiment is already cautious. He noted that the stock trades at a discount to its prior peaks and to large-cap peers, making it a buying opportunity.

Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsAPp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.

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