Meta Platforms (META) may benefit from new revenue streams from its Business Agents, further AI-driven ad improvements and potential sales of excess computing capacity, while higher spending remains a risk to earnings, UBS Securities said Thursday in a report.
Business Agents, the AI chatbots that help automate customer messaging and ad interactions, reached 1 million accounts within a month of launch, UBS said. Meta plans to begin charging for the service in H2, and revenue may ramp up faster than Meta's typical two-year timeline because the company already has a large base of accounts, expanding potential for 2027 or 2028 estimates, the report said.
Meta may also generate revenue by selling unused compute capacity or access to its AI models, while continued use of AI in advertising might improve recommendations and help businesses create ads, UBS said.
Higher operating and capital spending may pressure future earnings, especially if Meta continues to invest heavily in 2027 and 2028 or takes on more debt, the report said.
UBS lowered its price target on Meta stock to $715 from $766 and reiterated its buy rating.
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