JPMorgan downgrades Meta Platforms and cuts price target on AI spending concerns
Updated
Updated · CNBC · Apr 30
JPMorgan downgrades Meta Platforms and cuts price target on AI spending concerns
12 articles · Updated · CNBC · Apr 30
The bank lowered its target to $725 from $825 after Meta raised 2026 capital expenditure guidance to $125 billion-$145 billion, and the shares fell more than 9% despite better-than-expected first-quarter results.
JPMorgan said Meta's AI-driven advertising gains are encouraging, but intensifying competition and uncertainty over returns beyond advertising could keep the stock under pressure.
Meta has invested heavily in AI, including more than $14 billion in Scale AI, yet JPMorgan's cautious view contrasts with broader Wall Street sentiment, where 60 of 67 analysts rate the stock buy or strong buy.
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