Bank of America raises Meta's 2026 revenue forecast and provides four major risk warnings.

After the financial report was released, American Bank analysts Justin Post and Nitin Bansal updated their rating views on Meta stock. Post believes that although the company's expense guidance far exceeded expectations, revenue growth will offset this impact; Meta's industry leading position is continuously expanding, while building a stronger artificial intelligence "moat". Bank of America analysts raised Meta's 2026 revenue expectations by 6% to $254 billion, expense expectations by 4% to $163 billion, and earnings per share expectations by 8% to $31.24; and raised 2027 earnings per share expectations by 12% to $33.65. Analysts highlighted four major downside risks for Meta: declining user engagement due to market competition; privacy or data-related issues affecting revenue generation; Wall Street may give a negative valuation to the metaverse business; and new regulatory policies may impact the company's commercialization and monetization.