(CercleFinance.com) – BofA reduced its price target on Meta Platforms on Thursday, which it lowered from 150 to 136 dollars following the “mixed” results published yesterday evening by the Californian technology group.
The research department, which had downgraded its opinion on the title to ‘neutral’ at the very beginning of the week, recalls that the parent company of Facebook reported Wednesday a third quarter turnover better than expected, but earnings per share (EPS) below expectations.
But the analyst says above all to retain from the publication that ‘the costs are very real while the returns are still virtual’.
He recalls that Meta said yesterday to provide between 34 and 39 billion dollars in investment spending next year, while Wall Street was only targeting 29 billion dollars.
While some of these expenditures (Reels and monetization of messaging) could bear fruit as early as next year, BofA expects projects in the ‘Metaverse’ and artificial intelligence to weigh significantly on results in 2023.
“The looming delay in seeing the first results of investments in the Metaverse and the increasing intensity of capital in the advertising business pose as potential sources of concern for investors,” he summarizes. .
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyzes disseminated by Cercle Finance only constitute a decision-making aid for investors. The responsibility of Cercle Finance cannot be held directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional adviser before any investment. This indicative information does not in any way constitute an incitement to sell or a solicitation to buy.
Are you following this action?
Receive all the information about META in real time: