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Stock impact report

BofA Reiterates Buy on META as AI Spending Fears Ease [Yahoo! Finance]

Meta Platforms, Inc. - Class A (META) 
Company Research Source: Yahoo! Finance
Despite the recent multiple compression, the firm is constructive on the stock driven by key near-term catalysts. BoFA noted how Meta has lagged the broader market and some of its biggest peers despite analysts having raised Meta's 2026 earnings estimates. Investors have grown cautious on the stock amid concerns about AI spending and rising operating costs. Stock market charts. Photo by Kaboompics.com on Pexels “2025 YTD, Meta stock (up 11% y/y) has underperformed the NASDAQ (up 18%) and Alphabet (up 56%). Although Meta's 2026 consensus EPS estimates increased 16% from the start of 2025, the 2026 P/E multiple contracted in 2H'25 as AI sentiment deteriorated and 2026 Opex concerns grew.” Despite these concerns, the firm finds Meta's 2026 expense guidance and LLM launch in the first half of 2026 as potential near term catalysts. Looking ahead, investors will remain focused on AI investment spend and the returns these investments may generate across core apps, advertising monetiz Show less Read more
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