Bank of America Recommends Buying Meta Stock Despite Earnings Miss
Meta Platforms reported a Q2 earnings miss due to higher-than-expected costs, including legal and severance charges. While revenue exceeded estimates with $60.8 billion—up 28% year-over-year—the stock dropped nearly 9% in after-hours trading as EPS fell short of expectations at $6.18 versus the projected $7.20. Bank of America analyst Justin Post argued that investors overreacted, emphasizing Meta's strong advertising performance and AI-driven improvements already boosting ad clicks and conversions. He highlighted a compelling valuation with an 8.3% increase in Facebook ad clicks and a 15.7% uplift in conversions due to AI enhancements. Post upgraded his stance on the stock to 'Buy,' citing undervalued capacity assets like data centers, GPUs, and custom silicon as key drivers for future growth.
Topics: AI spending Bank of America Costs Earnings Report Meta