Meta's founder-led vision and aggressive AI investments position it for long-term growth, despite short-term scrutiny over capital expenditures and profitability. WhatsApp's under-monetized 3B user base represents a core driver of future upside, with new ad formats and AI-powered business tools unlocking incremental revenue. Meta's operational strength—$36B in annual free cash flow and robust user growth—funds experimentation and attracts top AI talent, reinforcing its competitive advantage.
Meta has refused to sign the European Union's code of practice for its AI Act, weeks before the bloc's rules for providers of general-purpose AI models take effect.
Meta appointed Connor Hayes, Meta's VP of product for generative AI, to become the head of Threads, per Axios.
The case followed revelations that data from millions of Facebook users was accessed by Cambridge Analytica, a now-defunct political consulting firm that worked for Donald Trump's successful presidential campaign in 2016.
Mark Zuckerberg and other current and former Meta executives have settled a lawsuit filed by a group of shareholders. They were seeking $8 billion for the damage the executives caused the company by allowing repeated violations of Facebook users' privacy in relation to the Cambridge Analytica scandal.
This is a developing story.
A lawyer for Meta Platforms shareholders who were suing Mark Zuckerberg and other company leaders told a Delaware judge on Thursday that the parties had reached a settlement agreement, ending a $8 billion trial over Facebook's user privacy violations.
So far this year, one of the better performers among Magnificent 7 has been Meta Platforms Inc.
Famed investor Marc Andreessen is scheduled to take the stand on Thursday to defend his role on the Facebook board of directors when it was hit with a $5 billion fine in 2019 for alleged violations of an agreement with a U.S. regulator to protect user privacy.
Meta is making massive AI investments, aiming to become a leading AI powerhouse and compete with OpenAI and other peers. Despite potentially facing near-term margin pressure from heavy spending, I see long-term value in Meta's enterprise AI strategy and closed model monetization. Given the growth outlook and AI initiatives, I reiterate my BUY rating with a $775/share target, valuing META at 18.11x eFY26 EV/EBITDA.
Meta CEO Mark Zuckerberg is going to trial with shareholders over his management of the company's user data. Bloomberg's Riley Griffin discusses the case with Ed Ludlow on “Bloomberg Tech.
Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) will soon report its second quarter earnings amid growing optimism from Jefferies analysts, who point to better-than-expected revenue trends, strengthening ad metrics, and continued long-term investments in AI. The analysts upped their price target to $845 from $790, implying upside of 19% from current levels.