Meta Q1 earnings: Wall Street watching for AI spending, impact of tariffs on advertising

Despite macroeconomic concerns, JPMorgan said that Meta’s strong execution and AI opportunities should help the company’s results.

“We believe META remains well-owned driven by strong execution & growing AI monetization,” JPMorgan analysts wrote. “We’re bullish on AI-driven Ad improvements, video unification, WhatsApp Ads, Llama, & Meta AI.”

The bank said it believes investors expect Meta Platforms’ revenue to grow by about 13% year over year. Meeting or beating those expectations would likely boost the stock. It said that while macro factors are a concern, “tens of millions of advertisers should prove relative insulation.”

With regards to capex, JPMorgan expects the company to maintain its aggressive investment philosophy to capture the AI opportunity.

“Our $108B 2025 GAAP expenses is below Meta’s $114B-$119B guide as we expect META to rationalize expenses against lower growth,” JPMorgan said.

JPMorgan rates Meta Platforms at “Overweight” with a $610 price target.