Meta Platforms' AI Story Gains Traction After Q3 Revenue Beat, BofA Says

10:57 AM EDT, 10/22/2026 (MT Newswires) -- Meta Platforms (META) beat Q3 revenue expectations, with expanding artificial intelligence opportunities supporting its growth outlook, BofA Securities said in a note Thursday. The company reported revenue of $64.60 billion, up from $51.24 billion a year earlier. Analysts expected $63.34 billion. The company's expanding AI business, particularly its Muse AI platform, remains a key focus. Meta outlined a target of reaching 1 billion Muse users and plans to improve its functionality, expand internationally, and reduce computing costs, BofA analysts said. "While costs to provide AI services will also be increasing, we think the Street will look more favorably on investment now that product opportunities are more visible," the analysts added. The analysts raised their 2027 revenue estimate for Meta by 1.3% to $319 billion but lowered their earnings per share forecast by $0.24 to $34. Expenses are expected to rise 30% year-over-year to $215 billion in 2027, excluding the one-time legal charge, with additional capacity rental costs potentially pushing spending higher, the analysts added. BofA raised its price target on Meta to $845 from $810 and kept its buy rating. Price: 652.36, Change: -45.17, Percent Change: -6.48