Meta’s AI Push Gains Momentum Ahead of Earnings — Guggenheim Stays Bullish

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks Everyone Is Watching CloselyOn July 28, Guggenheim analyst Michael Morris raised the price target on the stock to $800 from $725.00, while maintaining a “Buy” rating. The increased price target comes ahead of its July 30 Q2 earnings report.

Based on the firm’s pre-earnings buyside survey, Meta is the second-ranked long idea into earnings, with 27% of 105 respondents selecting it. Meanwhile, only 10% ranked the stock as a short idea, which positioned it ninth in the said category.

Meta’s AI Push Gains Momentum Ahead of Earnings — Guggenheim Stays Bullish

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Intra-quarter ad checks from the firm reveal how it is evident that demand for Direct Response ads is robust, fueled by progress on Advantage+.

Moreover, the firm is also confident that the overall magnitude of opportunity and competitive intensity is such for Meta that it will continue to pursue AI growth and the “aggressiveness in investment” that comes with it.

Guggenheim further noted how it is probable that Meta’s commitment to AI investments will push “further aggressiveness in investment.” Its buy-side survey showed that 95% of respondents forecast 2026 capital expenditures of $76 billion or higher, while the firm has a figure of $82 billion now.

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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