Bank of America Securities analysts raised the price target for Meta Platforms (NASDAQ:META) to $710 from $660 while maintaining a Buy rating on the stock. This comes on the back of Meta’s stellar performance in 2024, where the stock surged 65%, significantly outpacing the NASDAQ's 39% rise and Alphabet's 35% gain. The growth was fueled by revenue beats, stringent cost management, and growing confidence in Meta’s AI capabilities.

Heading into 2025, the analysts remain bullish on Meta, citing several key growth drivers. The company is poised to benefit from a stable macroeconomic environment, an increasing contribution from AI-driven ad revenues, and expanding messaging-related income streams. Meta’s continued focus on cost efficiency, evidenced by recent workforce reductions, further strengthens its investment appeal.

For long-term investors, Meta's $58 billion estimated AI-related capital expenditures in 2025 will be a focal point as its return on investment in AI continues to unfold. In the short term, growth in ad revenue driven by AI, potential impacts on margins due to increased depreciation, and the rollout of new AI capabilities are expected to garner significant attention.

Meta’s evolving AI initiatives include advanced content and ad creation tools, the Meta AI rollout, automated messaging solutions, and cost savings from coding automation. These developments are anticipated to enhance the company's competitive edge and sustain its growth trajectory in the coming years.