JPMorgan Lifts Meta Price Target on AI and Metaverse Investments

Meta Platforms Inc. (NASDAQ:META) saw its price target raised to $735 from $675 by JPMorgan on June 4. The analysts maintained their ‘Overweight’ rating on the stock.

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One of the factors the analysts emphasized as having influenced their decision is Meta’s dominant position in the social media landscape. They highlighted the social media giant’s extensive reach and engagement that continues to generate powerful network effects. According to the analysts, these advantages offer significant value to advertisers and contribute to Meta’s potential as a long-term blue-chip investment.

The other factor that JPMorgan considered was Meta’s commitment to substantial resources for artificial intelligence (AI) and Metaverse development. The firm acknowledged that these ambitious goals are driving increased infrastructure investments but expressed confidence in Meta’s ability to generate returns from higher spending. Be that as it may, the analysts project solid revenue and earnings per share growth for FY2026. They cite the company’s strong historical track record.

According to JPMorgan’s analysis, Meta maintains an industry-leading gross profit margin of 81.77%. The company also has demonstrated robust revenue growth of 19.37% over the past twelve months. This performance provides ample resources for strategic initiatives.

Meta Platforms Inc. (NASDAQ:META) operates the world’s largest social media ecosystem, including Facebook, Messenger, Instagram, WhatsApp, and Threads. The company generates revenue primarily through digital advertising while investing heavily in virtual and augmented reality technologies through its Reality Labs division.

While we acknowledge the potential of Meta Platforms Inc. (NASDAQ:META) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about this cheapest AI stock.

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