BMO analyst maintains hold rating on META, citing high capital costs and regulatory risks despite a $720 price target.
Meta Platforms (NASDAQ: META) fell 5.3% Friday as BMO analyst Brian Pitz reiterated a market perform rating and $720 price target. The stock trades below $630, but Pitz warned of $140 billion in capital spending this year with limited visible returns on AI investments.
Free cash flow remained strong at $49.4 billion over the past 12 months, but regulatory pressures on Meta’s core social media business pose risks. The analyst highlighted concerns over global restrictions targeting the company’s ad-driven revenue model.
The broader Nasdaq declined 1.5% amid a tech sector sell-off, amplifying META’s losses.