Investors are concerned about Meta’s spending plans for AI and the metaverse, Mizuho says
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Mizuho said in a recent note that investor concerns about Meta’s massive investment cycle has kept Wall Street expectations “in check.”
But that means overall expectations may prove to be too conservative.
“We believe risk/reward appears positive on Meta into the print with solid 2Q24 ad agency tracking, achievable 3Q24 expectations, and flexibility in opex to manage raising capex,” Mizuho analyst James Lee said.
“At the same time, we view consensus FY24 growth of 17% conservative with improved ad pricing growth from Reels, Amazon’s integration into FB shops, and special events revenue growth,” Lee added.
Mizuho has an “Outperform” rating on Meta with a $575 price target.