What the analyst said
Erste Group analyst Hans Engel downgraded Meta Platforms Inc. (NASDAQ: META) from Buy to Hold.
“For 2026, the company anticipates a significant acceleration in spending to support its AI ambitions. Growth in capital expenditure is expected to be significantly higher in 2026 than in 2025.
The main reasons for this increase are the need for infrastructure capacity, including computing and cloud costs. Asset turnover (the ratio of revenue to assets) is expected to fall further.
Share buy-backs have also recently decreased significantly. This trend will continue due to the high level of investment required.
We therefore see limited upside potential at the current valuation level. Hold.”
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