Needham upgrades Meta (META.US) from bearish to neutral: sky-high capital spending raises concerns.

According to the Intelligent Financial News APP, Needham issued a research report, upgrading its rating on Meta Platforms (META.US) from "outperforming the market" to "hold". Analyst Laura Martin believes that this rating adjustment reflects the current situation of slowing employee productivity at Meta. She believes that factors such as an increase in total number of employees and rising per capita costs are limiting the upside potential of the stock price. However, the research institution also predicts that Meta will exceed its revenue and profit margin expectations for the second quarter of 2025, projecting a 14% revenue growth and 6% earnings per share growth in 2025.