{
  "id": 15721934,
  "title": "BMO Capital reiterates Meta stock rating on AI momentum concerns",
  "url": "https://urgent.news/2026/10/20/bmo-capital-reiterates-meta-stock-rating-on-ai-momentum-concerns",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-20T08:42:40.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/bmo-capital-reiterates-meta-stock-rating-on-ai-momentum-concerns-93CH-4959173"
  },
  "original_language": "en",
  "account": "BMO Capital maintained a Market Perform rating on Meta Platforms Inc. stock while setting a $580 price target. The current trading price at $705.44 exceeds the target, with analysts predicting a range of $580 to $1,050. The firm highlighted Meta's growing AI product momentum as an improvement to the product story. However, BMO Capital expressed caution regarding the scale and timing of monetizing these products, suggesting potential expenses may rise as AI features are introduced. Meta's early success with Muse and Connect hardware shows progress, yet it does not resolve the return on investment (ROI) concerns tied to the anticipated $144 billion and $179 billion capital expenditures in 2026 and 2027. Despite these substantial investments, Meta's financial health remains robust, with a gross profit margin of 81.75% and moderate debt levels, indicating the company's financial flexibility to support its AI initiatives. The recent child-safety settlement lessens trial risk but mandates structural changes aimed at enhancing user engagement as global child safety efforts expand. BMO Capital continues to recommend the stock with its Market Perform rating and $580 price target, focusing on the monetization of the new products. In addition, Meta is preparing for its third-quarter earnings report, with StoneX retaining a Hold rating and anticipating higher expenses due to a state attorney general settlement, possibly increasing costs by $10 billion. Morgan Stanley has upgraded its price target to $820, outlining growth potential in AI and projecting revenue estimates for 2027 and 2028 at an average earnings per share (EPS) of about $35. Furthermore, Meta was invited by Poland’s Digital Affairs Ministry to discuss removing violent content following school stabbings, and CEO Mark Zuckerberg experienced an awkward moment drinking Guinness during a podcast that quickly went viral and sparked mixed reactions.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}