On Monday, Jefferies maintained its bullish stance on Meta Platforms Inc. (NASDAQ: META), reiterating a buy rating and a $600.00 price target, signaling continued confidence in the tech giant’s performance and innovation trajectory.
Financial Health and Market Position
Meta is currently trading at $516.54 and remains a financial powerhouse with a gross profit margin of 81.68% and revenue growth of 21.94%. According to InvestingPro, the company holds a “GREAT” financial health score, indicating solid fundamentals that support its aggressive AI strategy.
AI Dominance with Llama 4
Brent Thill, a senior analyst at Jefferies, highlighted Meta’s ongoing leadership in the large language model (LLM) space following the recent unveiling of Llama 4. The update, while still in its rollout phase, emphasizes a high cost-to-performance ratio, a critical factor expected to drive widespread adoption of Meta’s AI solutions.
Although Llama 4 has yet to feature advanced reasoning capabilities on par with competitors like DeepSeek R1, Thill believes Meta is well-positioned to bridge that gap soon. Meta’s vast computational resources and deep data pool give it a notable edge in developing next-gen AI tools.
Thill also estimated that the Llama project alone could add $80 billion to Meta’s market capitalization, representing a 6% increase in valuation. This underscores the project’s strategic importance to Meta’s future.
Infrastructure Expansion and Strategic Investments
In line with its AI ambitions, Meta is investing nearly $1 billion in a new data center project in Wisconsin, aimed at strengthening its AI and cloud infrastructure. This initiative reflects the company’s long-term vision of scaling advanced computing to support LLMs and other demanding workloads.
However, Meta’s journey hasn’t been without hiccups. The official release of Llama 4 has been delayed to April 2025 due to performance optimization challenges. In the meantime, Intel (NASDAQ: INTC) has announced that its Gaudi 3 AI accelerators and Xeon processors will support Llama 4, a move expected to enhance compatibility and performance across AI workloads.
Mixed Analyst Sentiment Amid Macroeconomic Headwinds
Meanwhile, TD Cowen made a slight downward adjustment to its outlook, revising its price target on Meta from $785 to $725, though it maintained a Buy rating. The firm still anticipates a strong Q1 earnings report, projecting advertising revenue to rise 17% year-over-year and total revenue to reach the higher end of guidance.
Despite trimming 2025 estimates due to macroeconomic uncertainties, TD Cowen remains upbeat about Meta’s advertising trajectory, forecasting a 14% year-over-year increase for the next fiscal year.
Outlook
Meta continues to cement its position as a technology leader by pushing the boundaries of artificial intelligence and enhancing its infrastructure. While challenges remain, particularly in releasing high-performing models and navigating global economic pressures, analysts broadly agree that Meta’s robust financial health and innovation pipeline make it a strong long-term bet.
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