Bank of America reiterated its Buy rating for Meta and kept its $835 price target unchanged, highlighting the company’s progress in monetizing AI.
According to the report, investors have been particularly concerned about high infrastructure costs in recent months, but Bank of America states that new paid “consumer subscriptions” and so-called enterprise solutions are creating significant new revenue streams. These services could bring stable long-term growth despite identified risks.
BofA believes enterprise AI services and cloud infrastructure represent a potentially significant long-term opportunity, noting that the broader enterprise AI and cloud market could exceed $1 trillion by 2028. The firm said enterprise customers could provide Meta with a more durable revenue stream while also helping offset risks associated with overbuilding AI capacity.
While maintaining its bullish stance, BofA cautioned that risks remain, including heavy dependence on digital advertising, elevated AI-related spending, growing competition from AI-native platforms and ongoing regulatory challenges.