META
Meta’s ad machine is still humming
Meta shares nudged higher Monday after Bank of America basically said, “Yeah, this giant ad business still looks pretty good.” The bank reiterated its Buy rating and kept a juicy $835 price target on the stock, arguing that ad demand remains healthy even with the macro soup still bubbling in the background.
The real plot twist: AI money
BofA’s bigger message is that Meta’s AI spend story might eventually become an AI revenue story. The firm pointed to possible monetization paths like licensing Meta’s models, selling Business Agent products, subscriptions, and even leasing out excess compute capacity to third parties. In other words: all that AI infrastructure may not just be a very expensive hobby.
July 29 is the next big date on the calendar
Meta is set to report second-quarter earnings on July 29, and Wall Street is already gaming out the numbers. BofA lifted its Q2 revenue estimate to $60.6 billion and EPS to $7.50, both above consensus, and it thinks the company could talk about stronger margins and maybe tighter expense guidance if layoffs keep the headcount lower.
Big picture
Meta stock already trades like a company investors expect to keep winning, but BofA’s pitch is that the market may still be underestimating how much AI can boost the ad machine — and maybe create a few side hustles, too. If Meta can show even a little proof on monetization, the valuation debate could get a lot more interesting, fast.