Analysts Hail Meta as AI Ad Value Stock at $606 Despite Capex Surge

Meta shares hover near $606 after blockbuster Q1 FY2026 earnings ($56.31B revenue +33% YoY, EPS $10.44) drove an 8-9% drop due to $125-145B capex guidance hike, prompting JPMorgan's Neutral downgrade to $725. The narrative evolved from 2023's New Street Buy upgrade on AI optimism and FY2025's record $201B revenue with Moody's Aa3 affirmation, through AI concerns like Arete Neutral on $115-135B spend, 20% job cut rumors ($5-6B savings), Avocado delay, to bullish counters: Morgan Stanley $775 Top Pick, UBS $908, BofA $835. Consensus Strong Buy at ~$854 underscores AI-driven ad efficiency and PEG 0.96 undervaluation.