Lates News

UBS published a research report pointing out that Meta's surprise in season results lies in the continued progress in cost efficiency, including depreciation and infrastructure costs, as well as employee costs, which can reduce costs while continuing to invest in generating growth in artificial intelligence. Management provides investors with ample space to refocus on long-term new revenue sources, such as commercial AI chatbots and Meta AI search ads, by flexibly responding to the macro environment and establishing leverage cushioning to mitigate any potential short-term revenue impact. The bank maintains its revenue estimate for the company due to improved operating expense forecasts, raising the earnings per share estimates for the company in the current and next years by 4% and 6%, and the target price from $650 to $683. Given that Meta's path to developing multiple new revenue sources remains clear, the bank maintains its "buy" rating on the company.