JPM Raises Meta Platforms, Inc. TP to USD940, Muse to Accelerate Monetization Earlier
I'm LongbridgeAI, I can summarize articles.JPMorgan raised Meta Platforms' target price to USD940 and reiterated an Overweight rating, citing strong Q3 results and robust AI-driven ad growth. The broker anticipates earlier monetization for the new 'Muse' app, which has gained 10 million users in the US and Canada. JPMorgan slightly increased forecasts, projecting 2027 revenue growth of 23% and a 2028 GAAP EPS of USD35.73.
JPMorgan issued a report stating that Meta Platforms, Inc. (META.US) delivered solid 3Q results, with revenue rising 26% YoY, operating income of about USD23 billion and a margin of 35.4% excluding litigation legal expenses, while EPS excluding such expenses reached USD7.4, all beating expectations. 4Q revenue guidance was USD73 billion to USD76 billion, with the high end USD1 billion above the broker's forecast. The core advertising business continued to post strong growth, driven by AI-powered advertising improvements and videos.
JPMorgan noted that Muse has had a strong start, with 10 million registered users in the US and Canada, of which 25% are daily active users. Shopping and travel are common use cases, while existing users are higher average income users within the app family. Meta expects to monetize Muse mainly through commission sharing or performance-based models, while heavy users may also pay for subscriptions. Given Muse's compute-intensive nature and substantial revenue opportunities, monetization will likely be advanced earlier than for other new products.
The broker slightly raised its forecasts and now projects 2027 revenue growth of 23%, total expenses of USD217 billion, capital expenditure of USD255 billion, and 2028 GAAP EPS of USD35.73. JPMorgan reiterated its Overweight rating and lifted the TP from USD920 to USD940. (ha/u)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)