Meta Platforms' Increasing Investments Fuel Concerns Over Returns, BofA Says

-- Meta Platforms' (META) increasing investments are driving concerns over returns, but the company's artificial intelligence execution and upcoming product launches could lift optimism, BofA Securities said in a Thursday note.

The company raised its 2026 capital expenditures guidance to between $125 billion and $145 billion, from $115 billion to $135 billion previously, as it reported Q1 earnings of $10.44 per diluted share and revenue of $56.31 billion, both increasing year over year, the firm noted.

BofA Securities said Meta's AI investment cycle is bigger than expected, but the company's growing AI capacity could open new opportunities. In-house AI models could improve the social media giant's core business, the brokerage added.

BofA Securities raised its price target on Meta Platforms to $835 from $820, while reiterating buy rating.

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