Meta Platforms, Inc. (NASDAQ:META) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 4, analyst John Blackledge of TD Cowen maintained a “Buy” rating on the company’s stock, retaining the price objective of $810.00. The analyst’s rating is backed by a combination of factors highlighting Meta Platforms, Inc. (NASDAQ:META)’s strategic cost management and potential for earnings growth.
One of the main reasons is Meta Platforms, Inc. (NASDAQ:META)’s plan to significantly reduce its Metaverse-related expenses, which form part of the Reality Labs segment. As per the analyst, such cost reductions are anticipated to be ~30% by 2026, potentially leading to savings of $5 billion – $6 billion. Notably, this move can help partially mitigate the increased spending on AI infrastructure, which happens to be a key area of investment for Meta Platforms, Inc. (NASDAQ:META).
Elsewhere, Morgan Stanley reduced its price objective on the company’s stock to $750.00 from $820.00, while maintaining an “Overweight” rating. While the firm reduced its price objective, it believes that Meta Platforms, Inc. (NASDAQ:META) happens to be one of the few selected companies that could leverage leading data, distribution capabilities, and AI investments to fuel earnings power and maintain technological leadership.
While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
