Meta Platforms had a stellar 2024 and BofA Securities sees further upside.
Analysts Justin Post and Nitin Bansal reiterated a Buy rating on the social media stock and increased their target for the price to $710 from $660 on Thursday. Meta stock edged 1% up to $629.94 in morning trading.
Last year, Meta shares gained 65% — it outpaced Alphabet, which added 35% — thanks to strong cost discipline and optimism about the company’s capabilities in artificial intelligence.
“With a stable macro backdrop, a growing AI contribution to ad revenues, ramping messaging revenues, and continued cost discipline (recent headcount cuts), we remain positive on the stock in 2025,” the analysts wrote.
For longer-term investors, the perceived return on investment on AI is going to prove critical for the stock, BofA argued. Shorter-term investors are likely to focus on any gains in advertising revenue that AI brings this year, as well as Meta’s pipeline of new AI capabilities, including tools for creating content and advertisements, the bank said.