Mizuho Analysts Show Optimism for Meta and Google Stocks
Mizuho analyst Lloyd Walmsley has expressed a positive outlook on Meta Platforms and Alphabet, the parent company of Google, by initiating a buy rating for both. He has labeled Meta as a “top pick,” setting a price target of $925 and calling it Mizuho’s favored long-term internet investment.
Mizuho’s Positive Take on Meta
Walmsley believes that Meta has significant potential in leveraging artificial intelligence (AI), machine learning (ML), and generative AI more effectively than other companies in Mizuho’s coverage. He pointed out that Meta is revolutionizing user engagement and advertising strategies by incorporating AI, all while supporting a massive base of 3.5 billion daily active users, without the systemic risks that Google faces.
Moreover, he projects that Meta’s advertising sector could outpace growth among major internet firms, expecting an 18% increase from 2024 to 2027. This is supported by Meta’s further investments in augmented reality (AR), virtual reality (VR), and generative AI, aiming for $265 billion in advertising revenue by fiscal year 2027, which is about 3% higher than general forecasts.
Walmsley hopes that Meta can bolster its market position by monetizing new features, such as WhatsApp status and Threads, and possibly introducing ads through Meta AI.
Google Stocks Also Receive Buy Ratings
For Google, Walmsley assigned a buy rating with a price target of $295, expecting Alphabet to benefit from the ongoing AI surge in advertising and cloud services.
Specifically, he noted that Alphabet is well-placed to enhance user engagement on YouTube through new generative AI-based ads, alongside broader application of AI and ML innovations aimed at improving content quality.
Similarly, analysts think Alphabet’s AI mode and its Gemini initiatives are mitigating market share losses against competitors like OpenAI’s ChatGPT, as recent data indicates improvements in user engagement. “We think the positive effects of AI on Google’s advertising business still have a way to go,” Walmsley remarked.
Wall Street’s Favorable View on Both Stocks
According to Tipranks’ stock comparison tool, Wall Street shows a strong consensus to buy both Meta and Google shares. The average price target for Meta stands at approximately $877.69, suggesting an upside of about 18.1%. Meta’s stock has risen around 27% since the year’s beginning.
On the other hand, Google’s average stock target sits at $243.67, indicating that it is currently valued at its existing level. Google shares have increased by 29% so far this year.
