This article first appeared on GuruFocus.
Mizuho initiated coverage of Meta Platforms (META, Financials) and Alphabet (GOOGL, Financials) with Buy ratings, calling Meta its favorite long-term internet stock.
Analyst Lloyd Walmsley set a $925 price target for Meta, noting its leverage to artificial intelligence across ad products, user engagement, and operations. He forecast ad revenue growth of 18% annually from 2024 through 2027, reaching $265 billion about 3% above consensus estimates. Walmsley also pointed to future monetization opportunities from WhatsApp, Threads, and eventually advertising within Meta AI.
Alphabet was assigned a $295 price target, with Walmsley highlighting its position in AI-driven advertising and cloud computing. He said generative AI should expand the digital ad market and drive more engagement on YouTube. Data from SimilarWeb showed Alphabet’s Gemini and AI Mode features have helped slow share losses to rivals such as OpenAI’s ChatGPT.
Wall Street consensus remains bullish on both companies. According to TipRanks data, Meta carries a Strong Buy with an average target of $877.69, implying 18% upside. Alphabet also holds a Strong Buy, though its $243.67 average target suggests the stock is near fair value.
