Benchmark Reiterates Hold Rating on Meta Ahead of Earnings

Benchmark analyst Mark Zgutowicz reiterated a Hold rating on Meta (NASDAQ: META).

“We maintain our Hold rating in front META’s 1Q print on Wed., 4/19… Following last weeks announced 10% RIF (effective 5/20) and elimination of 6,000 open roles, we expect management to lower its CY26 total expense guidance range to ~$159B-$164B, from existing $162B-$169B.

Our ‘26E op. income has been revised up to $89.4B (from $83.8B), which sits +3% above consensus.

While management has suggested its end-to-end AI-powered ad solutions, notably Advantage+, are generating a $60B run-rate (30% of ad revenue), with the company facing a realistic est. $750B+ capex outlay over the next 5 years, management needs to provide a clearer articulation of the return flywheel.

We outline specific questions below and discuss why Muse Spark may be a step in the right direction fundamentally, it remains well short of competing frontier AI labs.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.