Meta Bets Big On AI: Ad Revenue Set To Outpace Google

Meta Platforms Inc (NASDAQ:META) is accelerating artificial intelligence-driven ad demand across its core platforms — Facebook, Instagram, Threads, and WhatsApp.The company's expanding AI infrastructure, including automated ad tools, custom silicon, and next-generation data centers, is expected to power double-digit revenue growth into year-end. Bank of America Securities analyst Justin Post maintained a Buy rating on Meta with a price forecast of $900.Also Read: Meta Taps Arm To Power AI Across Devices And The CloudPost expects Meta to post another strong quarter, citing upside from AI-driven advertising gains and a resilient macro backdrop.The analysts forecast third-quarter 2025 revenue of $50 billion and EPS of $7.30. That’s above the Street's $49.5 billion and $6.69 estimates. Post expects Meta’s ad revenue to rise 23% year over year and outpace Alphabet‘s (NASDAQ:GOOGL) 13% growth. The company expects to maintain an operating margin near 42% (down 49bps year-over-year compared to Google’s down 259bps Y/Y).Looking ahead, Post projects fourth-quarter revenue of $58.8 billion and EPS of $8.90, topping consensus of $57.3 billion and $8.12, with a likely company forecast of $55.5–$59 billion in fourth-quarter revenue, reflecting up to 22% year-over-year growth. The analyst anticipates Meta may tighten its 2025 expense guidance to $115–$117 billion and raise the lower end of its capex range to $68–$72 billion to support expanding AI infrastructure.He highlights Meta's continued AI buildout — including automated ad platforms, custom silicon, and data center investments — as key long-term growth drivers.Post sees AI improving ad targeting, CRM integrations, and content recommendations. New initiatives, such as Meta Business AI, could unlock incremental ad demand from smaller businesses in 2026, he added.The analyst notes that investors will closely watch updates on Meta's AI roadmap, Superintelligence Lab, and potential AI monetization.Despite heavy spending, he called the stock attractively valued at 23 times 2026 EPS.Price Action: Meta stock was trading lower by 0.36% to $729.51 at last check Tuesday. Meta To Acquire Rivos To Power AI Ambitions: Report Image: Shutterstock