{"id":134953,"date":"2025-11-14T16:31:18","date_gmt":"2025-11-14T16:31:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/134953\/"},"modified":"2025-11-14T16:31:18","modified_gmt":"2025-11-14T16:31:18","slug":"meta-meta-downgraded-as-rising-ai-capex-limits-upside-analysts-say","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/134953\/","title":{"rendered":"Meta (META) Downgraded as Rising AI Capex Limits Upside, Analysts Say"},"content":{"rendered":"\n<p class=\"yf-1090901\">Meta Platforms, Inc. (NASDAQ:<a href=\"https:\/\/finance.yahoo.com\/quote\/META\" data-ylk=\"slk:META;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">META<\/a>) is one of the <a href=\"https:\/\/www.insidermonkey.com\/blog\/10-trending-ai-stocks-on-wall-street-10-1643596\/?singlepage=1\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Trending AI Stocks on Wall Street.;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Trending AI Stocks on Wall Street.<\/a>\u00a0On November 10, Erste Group downgraded the stock to \u201cHold\u201d from buy driven by higher AI capex and reduced buybacks, limiting valuation despite strong fundamentals.<\/p>\n<p class=\"yf-1090901\">According to the firm, there may be a significant acceleration in 2026 spending to support Meta\u2019s AI ambitions and growth in capital expenditure will also be \u201csignificantly higher\u201d in 2026 than in 2025.<\/p>\n<p class=\"yf-1090901\">The firm sees limited upside potential at the current valuation level due to the need for a high level of investment for infrastructure capacity, including computing and cloud costs.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"\" loading=\"eager\" height=\"538\" width=\"960\" class=\"yf-1gfnohs loader\"\/>     <\/p>\n<p class=\"yf-1090901\">A close up of a businessperson&#8217;s hand typing on a laptop, preparing a financial report.<\/p>\n<p class=\"yf-1vulftw\">\u201cFor 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.\u201d<\/p>\n<p class=\"yf-1090901\">Meta Platforms has been expanding its advertising capabilities and also invests heavily in artificial intelligence and the metaverse.<\/p>\n<p class=\"yf-1090901\">While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you&#8217;re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the<a href=\"https:\/\/www.insidermonkey.com\/blog\/three-megatrends-one-overlooked-stock-massive-upside-1548959\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:best short-term AI stock;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"> best short-term AI stock<\/a>.<\/p>\n<p class=\"yf-1090901\">READ NEXT: <a href=\"https:\/\/www.insidermonkey.com\/blog\/11-must-watch-ai-stocks-on-wall-street-1635478\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:11 Must-Watch AI Stocks on Wall Street;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">11 Must-Watch AI Stocks on Wall Street<\/a> and <a href=\"https:\/\/www.insidermonkey.com\/blog\/10-ai-stocks-in-the-spotlight-this-week-3-1637725\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 AI Stocks in the Spotlight This Week.;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 AI Stocks in the Spotlight This Week.<\/a><\/p>\n<p class=\"yf-1090901\">Disclosure: None.<\/p>\n","protected":false},"excerpt":{"rendered":"Meta Platforms, Inc. (NASDAQ:META) is one of the Trending AI Stocks on Wall Street.\u00a0On November 10, Erste Group&hellip;\n","protected":false},"author":2,"featured_media":134954,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,15326,363,364,420,92405,33438,111,139,69,145],"class_list":["post-134953","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-stock","tag-artificial-intelligence","tag-artificialintelligence","tag-inc","tag-infrastructure-capacity","tag-meta-platforms","tag-new-zealand","tag-newzealand","tag-nz","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/134953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=134953"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/134953\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/134954"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=134953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=134953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=134953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}