Benchmark Reiterates Hold Rating on Meta as Future Looks ‘Uncertain at Best’
Benchmark analyst Mark Zgutowicz reiterated a Hold rating on Meta (NASDAQ: META).
“We maintain our Hold rating on the shares as ROIC, for the foreseeable future, looks uncertain at best.
META’s continued escalating capex trajectory looks as much defensive as it does offense as it faces formidable tech stacks, comparable deep-pockets, and unknown future model economics.
Despite strong 1Q revenue guidance, albeit aided by a +4% FX tailwind, our ‘26E op income is unchanged given the steep opex step-up (+41% y/y at mid) as AI competitive comp continues to outweigh headcount efficiencies.
Along with our estimate revisions (table, pg.
2), we discuss below why MetaAI’s reasoning deficiencies should not be discounted and why ‘27E will be a pivotal “proof” year for META’s owned/operated capacity.”
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