"Big Banks" Citigroup: Meta continues to focus on efficiency improvement and growth expansion strategy direction

Citigroup's research report indicates that foreign media reports suggest Meta (META.US) may cut spending by 10% across the board, with cuts in the metaverse department potentially reaching as high as 30%. Although it has become routine for Meta to reduce spending by 10% annually since 2022, this significant reduction in metaverse investment will undoubtedly free up resources for the Super Intelligence Lab to support its new AI products set to launch in 2026.

Citigroup believes that this news indicates Meta can achieve sustained product-driven growth by reallocating resources to the most promising areas. Meta remains a preferred stock; reiterating a "Buy" rating and a target price of $850