Wall Street watching for AI monetization, reaction to DeepSeek mania

• Meta will publish her fourth quarter income after the closing bell on Wednesday.

• The actions of the technology giant increased by 15% for the start of the year until Tuesday.

• Investors are on high alert for key details of the monetization of AI.

Meta will publish revenues from the fourth quarter Wednesday after the closing bell.

Investors will monitor the key details of the monetization of AI. They will also look for comments around the Sudden depthwhose AI models have turned the technology industry this week, Announcement more than $ 1 billion of market value.

Meta’s profits time release is shortly after 4 p.m., and his conference calling with analysts will start around 5 p.m.

Meta’s Stock has increased by 15% from the start of the year until the end of Tuesday, exceeding the S&P 500gain of 3%.

CFRA search: increased accent on AI

Meta has probably announced its $ 60 billion plan in Capex this year to highlight its concentration on artificial intelligence, ACFR research said.

“We think it is logical for Meta to withdraw the news before the gains on January 29 and to note that the emphasis on AI will probably result in a higher income potential over time,” wrote Angelo Zino, analyst in senior action at CFRA, wrote.

The company reiterated its note “buy” on the action.

Jefferies: Meta is a “first choice of AI”

Meta seems to have a strong growth dynamic, Jefferies said in a note. Analysts estimated that Meta’s revenues will relate to around $ 46.5 billion in the fourth quarter, while the first quarter income forecasts will be around $ 41.8 billion.

“Overall, we continue to be encouraged by Meta’s ability to maintain the growth of the DD REV, given the combination of a higher commitment from AI investments, the increased efficiency of advertisers and of the ramp of incremental monetization formats (for example WhatsApp & Llama). “

The company reiterated its note “buy” on the action and issued a price target of $ 715, which implies an increase of 5% of current levels.

Trutes titles: “key beneficiary of Tiktok’s misadventures”

Meta will probably be a key beneficiary of Tiktok’s challenges in the United States, trunic titles said in a note.

According to Sensor Tower, a social media analysis site, Threads saw a significant increase in the user’s time in the fourth quarter, probably due to the risk of closing Tiktok, said Truist.

“We consider META as a main beneficiary of Tiktok’s misadventures and as one of our favorites of 2025,” wrote in a note Youssef Squali, director general of the firm.

Truist reiterated his note “buy” on the action of the action and price of $ 700, which implies an increase of 3% compared to the current levels.

History continues

JMP: “The AI ​​investment cycle appears early”

Meta said he was planning more than $ 60 billion In capital expenses this year and will expand “its” considerably “AI teams.

The announcement is a sign that the markets are still at the first stages of the AI ​​investment cycle, which is positive for technological companies in Mega-Capitaine, said JMP analysts.

“Meta’s desire to invest also suggests that visibility on short -term income is positive because we believe that META continues to benefit from its AI products initiatives,” wrote the company in a note.

The company maintained its “outperformance of the market” note on action and issued a price target of $ 750, which implies an increase of 10% compared to current levels.

Bank of America: a multitude of positive catalysts in progress

A multitude of tail winds could be built for Meta this year, Bank of America said.

Analysts have written that the company is still in the early stages of monetization of its AI projects and the integration of technology in its messaging platforms, such as WhatsApp and Messenger.

Meta can also benefit from any disruption in Tiktok, some companies potentially passing to Meta to advertise.

“With a stable macro backdrop, an increasing AI contribution to advertising revenues, rampant messaging income and continuous cost discipline (recent workforce reductions), we remain positive on the stock in 2025”, added the analysts.

The bank has a note “buy” on the action. It has increased its price target to $ 710 per share, which implies an increase of 5% of current levels.

Metal-toe of gains: estimate of fourth quarter income is 46.98 billion dollars

4th quarter

• Revenue estimate: $ 46.98 billion

  • Rev. Advertising. Estimate: $ 45.66 billion

  • Family of applications Revenue estimate: $ 46.08 billion

  • Reality Labs returned estimate: $ 1.11 billion

  • Another income estimate: $ 433.3 million

• Operating income estimate: $ 20.09 billion

• Operational margin estimate: 42.6%

• EPS estimate: $ 6.78

• Estimate of advertising prints: + 10.1%

• Average price by advertising estimate: + 7.33%

• Average users of family services per day estimate: 3.28 billion

First trimester

• Income estimate: $ 41.67 billion

• Estimate of total expenses: 108.03 billion dollars

• Estimate of capital expenses: $ 52.18 billion

Full year

Source: Bloomberg data

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