Meta Platforms stock target cuts reflect AI cost concerns

Baird analysts lowered their price target for Meta Platforms Inc. to $750 from $830 while maintaining an "outperform" rating. The revision follows solid second‑quarter earnings but highlights uncertainty over the company’s massive AI‑related spending on data centers, chips and new product features. Analyst Colin Sebastian noted that the operating business remains strong, yet the financial return on AI investments is still unclear.

Scotiabank analysts also reduced their target, setting it at $600 down from $700 and keeping a "sector perform" rating. Nat Schindler warned that the high AI costs must translate into measurable revenue and cash‑flow before the stock can be valued higher. Despite the target cuts, Meta’s shares rose about 5% after the earnings release, trading near $560‑$586 per share.