Overview
- Baird’s Colin Sebastian reaffirmed a Buy rating on Meta and trimmed his price target to $815, citing margin pressures but emphasizing the company’s strategic position in AI.
- The analyst highlighted near‑term catalysts that include the next Llama model, updates to Meta AI, and monetization efforts across WhatsApp and Threads.
- Bloomberg previously reported deep cuts under consideration at Reality Labs as resources move toward AI initiatives, and Meta shares rose 4% on that report.
- Reality Labs has been reported to have accumulated $73 billion in losses, reinforcing the reallocation toward AI even as revenue growth and ad engagement improve.
- Meta shares were reported down about 13% over the past three months, and the company counts more than 3.5 billion daily active users across its apps as a potential channel for AI monetization.