Connect with us
DAPA Banner

Business

Why Wall Street Says Strong Buy Despite AI Spending Surge

Published

on

Stock Market

NEW YORK — As Meta Platforms Inc. (NASDAQ: META) navigates a volatile 2026 market environment, Wall Street analysts overwhelmingly recommend buying the stock, with a consensus “Strong Buy” or “Moderate Buy” rating and average 12-month price targets suggesting substantial upside from current levels near $610. Despite a post-earnings dip following elevated AI capital expenditure guidance, the social media giant’s robust advertising growth, user engagement and artificial intelligence initiatives position it as a compelling long-term investment for many.

Headquarters of Facebook parent company Meta Platforms Inc in Mountain View
Headquarters of Facebook parent company Meta Platforms Inc in Mountain View

Meta shares traded around $608–$612 in early May 2026, down from recent highs but still reflecting strong performance over the longer term. The stock has faced pressure after the company’s first-quarter results, where it raised 2026 capex forecasts to $125–$145 billion, primarily for AI infrastructure. Yet analysts see the heavy investment as a strategic bet on future dominance rather than a red flag.

Q1 2026 Earnings: Beat Overshadowed by Spending

Meta reported strong first-quarter results on April 29, with revenue reaching $56.3 billion, up 33% year-over-year, and diluted EPS at $10.44 (boosted by a one-time tax benefit). Both figures beat expectations. Advertising revenue, the core driver, continued its momentum amid Reels monetization gains and improved ad targeting.

However, the market focused on the increased capital spending outlook, sending shares down as much as 7–10% in after-hours and subsequent trading. Higher costs for AI chips and data centers fueled margin concerns in the near term, though CEO Mark Zuckerberg emphasized long-term payoffs in efficiency, content creation and new revenue streams.

Advertisement

Analyst Consensus: Strong Buy with $830–$840 Targets

As of early May 2026, 38 to 60 analysts cover Meta, with the vast majority issuing Buy or Strong Buy ratings and zero Sell recommendations in recent tallies. The average 12-month price target sits between $823 and $840, implying roughly 35–38% upside from current prices. High targets reach $1,015, while lows hover around $700.

Firms like Bank of America, Barclays and others have maintained or raised targets post-earnings, citing Meta’s advertising resilience and AI leadership through open-source models like Llama. Valuation remains attractive at a forward P/E around 21x with high margins and return on equity near 30%.

Bull Case: AI Investments Fuel Future Growth

Advertisement

Proponents argue Meta’s spending spree positions it at the forefront of AI-driven social platforms. Advances in recommendation algorithms, ad efficiency and potential new products — including metaverse and hardware initiatives — could drive sustained revenue acceleration. User metrics remain robust across Facebook, Instagram, WhatsApp and Threads.

Analysts highlight Meta’s ability to monetize AI tools for creators and advertisers while controlling costs over time. With no major competitive threats eroding its social dominance and global user base exceeding 3 billion monthly actives, the company’s scale provides a durable moat. Long-term forecasts see continued double-digit revenue growth into 2027 and beyond.

Bear Concerns: High Capex and Macro Risks

Skeptics point to near-term margin compression from elevated spending, potential regulatory hurdles in Europe and elsewhere, and broader economic uncertainty affecting ad budgets. The stock’s pullback reflects investor fatigue with heavy AI outlays before clear monetization proof emerges at scale.

Advertisement

Some trimmed targets post-Q1, citing macroeconomic weakness. However, even cautious voices maintain Buy or Hold ratings, viewing any weakness as a buying opportunity rather than a reason to sell.

Investment Considerations for 2026

For growth-oriented investors, Meta offers exposure to digital advertising recovery, AI innovation and potential efficiency gains. Dividend growth and share buybacks provide additional shareholder returns. Risks include execution on AI, geopolitical tensions and valuation multiple contraction if growth slows.

Diversified portfolios may benefit from Meta as a core tech holding, but position sizing should account for volatility. Short-term traders might wait for stabilization after the capex reaction, while long-term holders see current levels as attractive entry points given analyst targets.

Advertisement

Broader Market Context

Meta’s trajectory mirrors other Big Tech names balancing AI ambition with profitability. Strong Q1 ad performance underscores resilience in a competitive landscape, with competitors like TikTok and emerging platforms challenging but not displacing its ecosystem.

As 2026 progresses, upcoming quarterly reports, AI product launches and macroeconomic data will influence sentiment. Analysts will watch user engagement metrics, ad pricing power and progress on cost discipline amid heavy infrastructure builds.

Conclusion: Overwhelmingly a Buy for Most

Advertisement

Wall Street’s near-unanimous bullish stance, coupled with Meta’s proven business model and forward-looking investments, tilts the scales strongly toward Buy for 2026 and beyond. While elevated spending creates short-term noise, the consensus view holds that Meta’s strategic positioning will deliver significant shareholder value over the medium to long term.

Investors should conduct their own due diligence, consider risk tolerance and consult financial advisors, as stock performance involves inherent uncertainties. With no Sell ratings from major analysts and substantial implied upside, Meta remains one of the more favored large-cap tech names heading deeper into 2026.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

Not All Total Bond Market ETFs Are the Same. Here’s What to Know.

Published

on

Not All Total Bond Market ETFs Are the Same. Here’s What to Know.

Total bond market ETFs are designed to give investors access to a swath of the bond market in a single holding. But while they have similar names, they aren’t created equal—and the differences could undermine your investment rationale or saddle your portfolio with greater risk than you want.

Many of these exchange-traded funds start with similar benchmarks as a baseline, often a version of the Bloomberg U.S. Aggregate Bond Index. The Agg, as that index is often called, measures the U.S. investment-grade bond market and includes U.S. Treasurys, government agency and corporate bonds, plus mortgage-backed and asset-backed securities.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Continue Reading

Business

Mayor to prioritise tourist tax, better public transport and links with North Somerset

Published

on

Business Live

Labour’s Helen Godwin, the head of the West of England Combined Authority, is marking 12 months in office

West of England Metro Mayor Helen Godwin in front of Concorde (Image: John Wimperis) - free to use for all partners

West of England Metro Mayor Helen Godwin in front of Concorde(Image: Local Democracy Reporting Service / John Wimperis)

An overnight tourist tax across the Bristol and Bath region, better links with North Somerset and improved public transport connections in the South West are among the top priorities for the West of England’s mayor, she has announced.

Labour’s Helen Godwin has marked her first year as head of the West of England Combined Authority (Weca) by setting out plans for the future.

Ms Godwin was elected as metro mayor, covering Bath and North East Somerset, Bristol and South Gloucestershire, last May after securing 25.0% of the vote. In the role, she has the power to make decisions on areas such as jobs, transport, the environment, planning and business support.

On Tuesday (May 5), Ms Godwin welcomed news of the Devolution Action becoming law as a “huge step forward” and said the move would “empower” the West.

Advertisement

“Our ambitions match the West of England’s potential as we look to do more, faster,” she said.

Ms Godwin, who is pushing for a potential light rail link to Bristol Airport, said there would be more ‘green’ buses rolled out across the region and plans for a “mass transit” system would be developed, alongside the new train stations at Bristol Brabazon and Charfield.

“In the coming weeks, we will be banging the drum for the country’s fastest-growing regional economy at a major investment conference in Leeds,” she said.

“Bristol Temple Quarter and the Brabazon and West Innovation Arc new town are both among the UK’s biggest regeneration opportunities, which we will continue shouting about to help get more homes built, with the right transport links.”

Advertisement

The mayor also said there was “exciting news to come” for nature in the region.

“There is a lot to look forward to for people across the West of England,” she said.

The one-year milestone comes just days after the landmark English Devolution and Community Empowerment Act received Royal Assent (Wednesday, April 29), meaning more decisions will be taken in the West of England rather than Whitehall.

The new law is set to see the mayor and combined authority secure a raft of additional powers, including in transport, strategic planning, economic development and health.

Advertisement

“As mayor of my home region, I’m proud of the difference that we’ve made over the last year,” Ms Godwin added.

“Our region’s voice is being heard at last, as we work to make the most of devolution.”

During her first year in office, Ms Godwin said she was “proud” to have secured the green light for reviving the Portishead railway line and said building more links with North Somerset remained “a top priority”.

“We have started to deliver real change that people can see and feel,” she added.

Advertisement
Continue Reading

Business

Inspire Medical Systems, Inc. (INSP) Q1 2026 Earnings Call Transcript

Published

on

OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Company Participants

Ezgi Yagci – Vice President of Investor Relations
Timothy Herbert – Founder, Chairman, CEO & President
Matthew Osberg – Executive VP & CFO

Conference Call Participants

Advertisement

Lilia-Celine Lozada – JPMorgan Chase & Co, Research Division
Jonathan Block – Stifel, Nicolaus & Company, Incorporated, Research Division
Adam Maeder – Piper Sandler & Co., Research Division
Christopher Pasquale – Nephron Research LLC
Anthony Petrone – Mizuho Securities USA LLC, Research Division
Travis Steed – BofA Securities, Research Division
Larry Biegelsen – Wells Fargo Securities, LLC, Research Division
Richard Newitter – Truist Securities, Inc., Research Division
Michael Polark – Wolfe Research, LLC
Shagun Singh Chadha – RBC Capital Markets, Research Division
David Rescott – Robert W. Baird & Co. Incorporated, Research Division
Michael Sarcone – Jefferies LLC, Research Division
Brett Fishbin – KeyBanc Capital Markets Inc., Research Division
Daniel Markowitz – Evercore ISI Institutional Equities, Research Division
Michael Kratky – Leerink Partners LLC, Research Division

Presentation

Operator

Advertisement

Good afternoon. My name is [ Dilem ], and I’ll be your conference operator today. At this time, I’d like to welcome everyone to the Inspire Medical Systems First Quarter 2026 Conference Call. [Operator Instructions] I’ll now hand the conference over to your first speaker, Ezgi Yagci, the Vice President of Investor Relations at Inspire. You may begin the conference.

Ezgi Yagci
Vice President of Investor Relations

Thank you, [ Dilem ], and thank you all for participating in today’s call. Joining me are Tim Herbert, Chairman and Chief Executive Officer; and Matt Osberg, Chief Financial Officer. Earlier today, we released financial results for the 3 months ended March 31, 2026. A copy of the press release is available on our website. On this call, management will make forward-looking statements within the meaning of the federal securities laws. All forward-looking statements, including, without limitation, those relating to our operations, financial results and financial condition, investments in our business, full year 2026 financial and operational

Advertisement
Continue Reading

Business

Services Operating Normally After Recent Minor Disruptions

Published

on

FTSE 100 Surges 0.8% Today as Oil Eases and Markets

NEW YORK — Zoho, the popular cloud-based business software suite, is currently operating normally across its major services as of Monday, May 4, 2026, with no widespread outages reported on official status pages or major monitoring platforms. While some users experienced intermittent issues with specific components like Zoho PhoneBridge and CRM tools in late April, the company’s global infrastructure has stabilized, allowing millions of small and medium-sized businesses to continue relying on its integrated applications for CRM, email, project management and more.

Downdetector and independent status trackers show minimal user reports in the past 24 hours, with the vast majority of services functioning without interruption. Zoho’s official status dashboard confirms no active incidents across its primary data centers in the United States, Europe, Asia and other regions. This comes after a brief period of elevated complaints in late April when a power-related event in one data center caused temporary slowdowns for some EU and US users. Engineering teams resolved the issue quickly, and full service was restored within hours.

Zoho offers more than 55 integrated business applications under its Zoho One platform, serving over 100 million users worldwide. The suite’s popularity stems from its affordable pricing, seamless connectivity between tools and strong focus on privacy and data security. For businesses seeking alternatives to more expensive enterprise software from Microsoft or Salesforce, Zoho has become a go-to option, particularly for small teams and growing companies.

Recent minor disruptions highlighted the platform’s heavy reliance on multiple data centers. During the April incident, users reported slower response times in Zoho CRM, Mail and Tables. Zoho quickly communicated via its status page and social channels, maintaining transparency that customers have come to expect. The company’s proactive monitoring from locations including Seattle, Singapore, London and Australia helps minimize downtime and provides real-time visibility into service health.

Advertisement

For users checking today, the recommendation is straightforward: services are up and running smoothly. If individual users still encounter issues, common troubleshooting steps include clearing browser cache, trying a different network or device, or checking Zoho’s status page for region-specific updates. Most reported problems in recent days have been isolated and quickly resolved.

Zoho’s resilience during these minor events demonstrates the strength of its distributed architecture. Unlike some competitors that rely on single-cloud providers, Zoho operates its own infrastructure across multiple geographies, reducing single points of failure. This approach has helped the company maintain high uptime percentages even as its user base has grown exponentially.

Businesses dependent on Zoho for daily operations can take comfort in the platform’s track record. While no service is immune to occasional hiccups, Zoho has consistently ranked highly in uptime comparisons and customer satisfaction surveys. The company’s commitment to rapid issue resolution and clear communication during incidents has built significant trust among its customer base.

As remote and hybrid work models continue to dominate, reliable cloud tools like Zoho have become essential infrastructure for modern businesses. The platform’s all-in-one approach reduces the need for multiple subscriptions and simplifies IT management. Features like Zoho CRM’s AI-powered insights, Zoho Mail’s secure collaboration tools and Zoho Projects’ workflow automation help teams stay productive regardless of location.

Advertisement

For those concerned about potential future disruptions, Zoho offers several best practices. Enabling multi-factor authentication, regularly backing up critical data and familiarizing teams with offline capabilities where available can minimize impact during rare outages. The company also provides detailed documentation and responsive support channels for troubleshooting.

The current stable status should reassure the millions of organizations that rely on Zoho daily. From startups managing customer relationships to established firms handling complex projects, the platform’s reliability supports business continuity even during periods of high demand or minor technical challenges.

Looking ahead, Zoho continues investing in infrastructure improvements and AI enhancements across its suite. Recent updates have focused on better performance, enhanced security features and deeper integration between applications. These ongoing developments aim to make the platform even more robust and valuable for users worldwide.

In summary, as of May 4, 2026, Zoho services are fully operational with no major issues reported. Users experiencing any difficulties should first check the official status page and follow standard troubleshooting steps. The platform’s strong track record and proactive approach to service reliability continue to make it a trusted choice for businesses seeking comprehensive cloud solutions at competitive prices.

Advertisement

Business owners and IT administrators can monitor Zoho’s status page or subscribe to notifications for real-time updates. With services running normally today, teams can focus on productivity rather than technical concerns. Zoho’s commitment to reliability ensures that most users experience consistent performance, supporting the growing number of organizations that depend on its ecosystem for daily operations.

Continue Reading

Business

Why Big Retailers Are Ditching Machines Amid Theft & Frustration

Published

on

Costco

PHILADELPHIA — Walmart is stripping self-checkout kiosks from more stores and bringing back cashier lanes, joining a growing retail shift that includes Costco’s push for faster, staff-assisted scanning as theft concerns and customer complaints mount nationwide.

Costco
Walmart Costco Self-Checkout Overhaul: Why Major Retailers Are Ditching Machines Amid Theft and Shopper Frustration in 2026
IBTimes US

The world’s largest retailer removed all self-checkout machines from its South Philadelphia Supercenter in late April 2026, converting the space to traditional staffed registers. Company officials cited feedback from customers and associates, aiming to deliver a more personalized shopping experience as part of broader remodeling plans for more than 650 stores this year.

“These changes are guided by feedback from associates and customers, local shopping patterns, and the needs of the business in each community,” a Walmart spokesperson told local media. The goal is to “improve the checkout experience and enable associates to provide more personalized customer service.”

The move echoes earlier removals in Shrewsbury, Missouri; Cleveland, Ohio; parts of New Mexico and other high-theft locations. In Shrewsbury, police reported a sharp drop in calls after self-checkouts disappeared — from hundreds in prior periods to far fewer — with arrests nearly halving.

Industry analysts and law enforcement point to retail theft, often dubbed “shrink,” as a primary driver. A December 2025 LendingTree survey of more than 2,000 consumers found 27% of self-checkout users admitted to intentionally skipping scans, up 12 percentage points from 2023. Another 36% said they accidentally left with unscanned items, and most kept them. Overall, 69% agreed the machines make theft easier.

Advertisement

Higher-income shoppers were more likely to admit deliberate non-scanning, with 40% of those earning six figures or more confessing, according to the survey. Many expressed little remorse.

Walmart, which loses billions annually to theft across its stores, has reviewed self-checkout use in high-shrink locations. Similar trends hit Target, Dollar General and others, with some chains removing or limiting kiosks entirely.

Costco Takes a Different Path

Costco, known for its warehouse model and membership requirements, is not fully eliminating self-checkout but is transforming the experience with technology and staff oversight. The company is rolling out pre-scan systems where employees scan cart items while shoppers wait in line. By the time customers reach the register, items are pre-loaded; they simply scan their membership card and pay.

Advertisement

Automated pay stations in pilot stores complete transactions in about eight seconds on average, dramatically speeding up lines. CEO comments during earnings calls highlighted strong member feedback and improved traffic flow.

“Early results show this is improving the flow of traffic, and we’ve received great member feedback,” a Costco executive said.

At remaining self-checkout areas, Costco now often requires photo ID matching membership cards, adding a layer of accountability. The retailer is also testing scan-and-go apps and other efficiencies without the full cashier reversion seen at Walmart.

Regulatory Pressure Mounts

Advertisement

New state laws are accelerating changes. Bills in California, Massachusetts, Ohio, Rhode Island and others propose staffing requirements — such as one employee per set number of kiosks — or item limits at self-checkouts, often capping them at 10-15 items. New York City has considered similar restrictions.

Proponents argue the rules promote fairness for workers and curb theft. Critics, including some retailers, worry about labor costs and slower service. In response, many chains are proactively adjusting rather than waiting for mandates.

Shopper Reactions Mixed

Customer responses vary widely. Some celebrate the return of human cashiers, citing frustration with error-prone machines, long error-resolution waits, and the “do-it-yourself” burden after a full shopping trip.

Advertisement

“I hate self-checkout. I always have issues with the scanner or weights, and then I wait forever for help anyway,” said one Philadelphia-area shopper who welcomed the change. “Bring back the cashiers.”

Others lament lost convenience, especially for quick trips with few items. “It used to be fast for small baskets. Now lines are longer again,” complained a frequent Walmart visitor on social media.

Social platforms buzz with debates. Viral posts show before-and-after photos of stripped checkout areas, with hashtags like #SelfCheckoutFail and #BringBackCashiers trending in retail communities. Some users admit occasional “honest mistakes” at kiosks, while others decry what they see as eroded trust in shoppers.

Retail experts note self-checkout’s initial promise — faster service, lower labor costs — collided with reality. Technical glitches, theft vulnerabilities and unintended labor shifts (associates still needed for oversight and bagging help) diminished benefits. Adoption soared to over 80% at many chains, but so did losses.

Advertisement

Broader Retail Trends

Sam’s Club, Walmart’s membership sibling, went further last year by replacing traditional self-checkout with AI-powered scan-and-go entirely in tested formats. Other grocers experiment with hybrid models blending mobile apps, computer vision and limited kiosks.

Dollar General removed self-checkout from thousands of stores in 2024, citing similar theft and operational issues. Target has limited item counts or added more staffed oversight in select locations.

The changes come as inflation-weary consumers demand value and efficiency. Retailers balance technology investment with human touchpoints. Walmart’s 2026 remodels will emphasize improved layouts, potentially including more “hosted checkout” zones where associates guide customers.

Advertisement

What’s Next for Shoppers

For now, experiences differ by location and chain. Walmart shoppers in affected stores must use cashier lanes, which some say feel nostalgic but risk longer peak-hour waits. Costco members enjoy quicker overall throughput thanks to pre-scans but face stricter verification.

Industry watchers expect more experimentation. AI cameras, better mobile apps and data-driven lane management could blend convenience with control. Yet the pendulum has swung back toward human interaction in 2026, at least partially.

“Self-checkout wasn’t the full solution many hoped,” one retail consultant noted. “Retailers are learning that technology works best when it supports, not replaces, the shopping experience entirely.”

Advertisement

As summer shopping ramps up, customers at Walmart and Costco will navigate evolving checkouts. Whether the shifts reduce theft, boost satisfaction and maintain speed remains to be seen — but the era of unchecked self-service appears to be cooling.

Continue Reading

Business

TransUnion president, International, sells $35,965 in stock

Published

on


TransUnion president, International, sells $35,965 in stock

Continue Reading

Business

S&P 500 falls from record high on Middle East worries

Published

on

S&P 500 falls from record high on Middle East worries


S&P 500 falls from record high on Middle East worries

Continue Reading

Business

OPEC+ Agrees to Raise Oil Production in June in First Meeting Without U.A.E.

Published

on

OPEC+ Agrees to Raise Oil Production in June in First Meeting Without U.A.E.

The Organization of the Petroleum Exporting Countries and their allies have agreed to raise oil production in June by 188,000 barrels a day in their first meeting without former member United Arab Emirates.

Seven countries, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, agreed to the move at a meeting on Sunday. It’s less than the May output raise of 206,000 barrels a day.

Continue Reading

Business

MediaAlpha, Inc. 2026 Q1 – Results – Earnings Call Presentation (NYSE:MAX) 2026-05-04

Published

on

OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Q1: 2026-04-29 Earnings Summary

EPS of $0.30 misses by $0.04

 | Revenue of $310.00M (17.29% Y/Y) beats by $11.42M

This article was written by

Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team

Advertisement
Continue Reading

Business

Extreme Networks CEO Meyercord sells $1.1m of company stock

Published

on


Extreme Networks CEO Meyercord sells $1.1m of company stock

Continue Reading

Trending

Copyright © 2025