CMBI Cuts Meta Platforms, Inc. TP to USD830 on Short-term Earnings and Cash Flow Uncertainty
I'm LongbridgeAI, I can summarize articles.CMBI lowered Meta Platforms' target price to USD830 from USD880, citing short-term earnings and cash flow uncertainty due to heavy AI investment. Despite Q2 revenue beating expectations and strong long-term AI potential, the broker maintained a Buy rating, forecasting modest profit growth for FY2027-2028.
CMBI issued a report stating that Meta Platforms, Inc. (META.US) announced its results for 2Q26, with total revenue rising 28% YoY to USD60.8 billion, broadly in line with market expectations. Operating profit fell 8% YoY to USD18.8 billion. Excluding USD2.4 billion in legal expenses, operating profit would have increased 4% YoY to USD21.2 billion, compared with market expectations of USD21.5 billion.
For 3Q26 guidance, management guided total revenue to grow 19%-25% YoY to between USD61 billion and USD64 billion, also in line with market expectations of USD63.1 billion. Given substantial AI opportunities on both the consumer and enterprise sides, the company remains committed to maximizing AI computing capacity in FY2026/FY2027, which may pressure short-term earnings and cash flow.
The broker expects new AI opportunities to gradually contribute to earnings and raised its FY2027-FY2028 operating profit forecasts by 0%-4%. Considering uncertainty surrounding short-term earnings and cash flow, it lowered the TP from USD880 to USD830 while maintaining a Buy rating. Key future catalysts include foundation model upgrades and accelerated monetization of enterprise AI. (ha/da)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)