Meta Platforms(META) 海通国际·2025-04-16 10:23Investment Rating - The report initiates coverage with an OUTPERFORM rating [1][2]. Core Insights - Meta Platforms is positioned to leverage AI-driven advertising in the 3.0 era, targeting a growth potential with over 3 billion users [1][3]. - The company has a strong monetization model, with advertising revenue accounting for 97% of total revenue, and is expected to see significant growth driven by AI technologies [3][4]. Company Overview - Meta Platforms, originally Facebook, has evolved into a leading global social media giant with over 3 billion monthly active users across its applications, including Facebook, Instagram, WhatsApp, and Messenger [3][9]. - The company is undergoing a strategic transformation towards the metaverse and generative AI, with substantial investments in AI infrastructure and GPU procurement [5][10]. Application Family Business - The Family of Apps segment includes major platforms that collectively cover over 3 billion users, with Facebook and Instagram being the core drivers of advertising revenue [26][33]. - The introduction of features like Instagram Reels has helped Meta regain user engagement, particularly among younger demographics, countering competition from TikTok [28][32]. AI Strategy - Meta's AI initiatives focus on enhancing advertising efficiency through generative AI technologies, which have significantly improved ad creation and targeting capabilities [4][49]. - The company plans to invest heavily in AI infrastructure, with capital expenditures projected between 65 billion for 2025, reflecting the competitive landscape in AI [5][59]. Financial Projections and Investment Recommendations - Revenue forecasts for FY25-27 are projected at 214.9 billion, and 69.4 billion, 90.3 billion [6][69]. - The target price is set at $664.03 per share, based on a P/E ratio of 25x for FY2025, indicating a strong investment opportunity despite competitive challenges [6][69].