Meta Sees Ad Momentum Ahead of Earnings — Analysts Raise Targets

Benchmark analyst Mark Zgutowicz raised Meta Platforms' price target to $800 from $640, reiterating a "Buy" rating ahead of its Q2 earnings call. This upward revision is predicated on expectations for stable top-line growth, fueled by robust e-commerce trends and sustained ad pricing leverage, with further revenue per advertiser gains anticipated from recent Advantage+ enhancements. The upcoming earnings call is also expected to highlight CEO Zuckerberg's substantial AI infrastructure investment plans, which could influence future operating expense guidance.

Analysis

Benchmark has materially increased its price target on Meta Platforms, Inc. (META) to $800 from $640, reiterating a "Buy" rating ahead of the company's Q2 earnings call on July 30. The analyst's bullish thesis is predicated on expectations for "stable top-line" results, supported by steady e-commerce trends and sustained advertising pricing leverage in the key U.S. and Canada markets, which have reportedly shown acceleration for two consecutive quarters. Further revenue upside is anticipated from the Advantage+ attribution enhancements implemented in May, which are expected to increase revenue per advertiser. The forward-looking narrative is heavily centered on artificial intelligence, with CEO Zuckerberg's pledge of "hundreds of billions of dollars" in AI infrastructure investment expected to be a primary topic. This significant strategic spending is forecast to result in maintained 2025 capex guidance but a slightly higher operating expense outlook, signaling a potential shift in the company's cost structure to fund long-term AI ambitions.

Key Decisions for Investors

• Investors should monitor the upcoming Q2 earnings report for confirmation of the anticipated stable top-line growth and advertising pricing power, which form the basis for the upgraded $800 price target.
• Pay close attention to management's commentary and formal guidance on capex and opex, as the scale and margin impact of the committed AI infrastructure investment will be critical for modeling future profitability.
• It is prudent to assess the reported impact of the May Advantage+ enhancements on revenue per advertiser, as this is a specific near-term catalyst cited by the analyst for potential revenue outperformance.