Meta Platforms (META, Financial) aggressive focus on artificial intelligence (AI) and dominance in digital advertising continues to capture Wall Street's attention. The company will have underlying past investments in AI infrastructure that will set ambitious price targets in the $650 to $800 per share range, nicely positioned for long-term growth.
Over the past 12 months, Meta reported 23% year-over-year revenue growth for $156.23 billion. Finally, operational efficiency is represented by the company's return on equity at 36% and on invested capital at 27%. For fiscal years 2024 and 2025, strong growth is projected, with revenue forecasted to grow from $134.9 billion to $186.3 billion and GAAP operating income to grow from $46.8 billion to $74.2 billion.
In the area of AI, Meta will increase the number of its computing infrastructure to over 2.5 million GPUs in the next two to three years. The expansion is designed to help the company with its AI-driven tools, including its assistant, which already has 500 million active users monthly. Meta's open-source approach to AI has attracted analysts like Brendan Eich, executive chairman of Brave, who has said it could further cement Meta's leadership in AI and spatial computing technologies.
While this all bodes well for Meta's future growth, in the near term, Meta is under pressure on margins because of its increased capital expenditures and investments in AI. As a result, some analysts adjusted their profit forecasts for the fiscal year 2025. But the company's advertising revenue, relying on Reels and other platforms driven by artificial intelligence and recommendations, continues to generate large sums that reflect well in its financial performance.