Meta earnings reaction, auto giant to rally more than 20%

(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Meta Platforms and General Motors topped Thursday’s analyst calls. Several analysts lowered their price targets on the Facebook parent following its latest quarterly report. Meanwhile, Bernstein said GM can add to its already strong year-to-date gains. Check out the latest calls and chatter below. All times ET. 5:38 a.m.: Wall Street reacts to Meta earnings Meta Platforms disappointed investors with its weak revenue guidance , sending shares down about 13% in premarket trading. Even amid the sell-off, many banks kept their bullish ratings on the Facebook parent. Here’s what analysts at some of the largest investment firms thought: Eric Sheridan, Goldman Sachs (Buy, PT at $500) “With management referencing past investment/product cycles such as Stories and Reels … we do expect the shares to remain volatile in the coming quarters (especially so if increased investment is met with downward revenue revisions from new levels). That said, we’d note that historically management has been able to effectively navigate such investment cycles and execute to position the platform for long-term success around product/computing shifts.” Brian Nowak, Morgan Stanley (Overweight, PT at $550): “META intends to continue to invest … in order to drive more engagement and monetization, but we are buyers of META on weakness, with it currently trading at 18X our new ’25 FCF (5.5% yield) in after hours. It also implies 17X ’25 earnings (a 15% discount to the 5yr FY2 average).” Doug Anmuth, JPMorgan (Overweight, PT down to $480 from $535): “We are encouraged that Meta’s success w/Llama 3 & Meta AI has increased management’s confidence in leading in AI, & we know that building out new products takes time, but comparisons to the scaling periods of Reels, Stories, & Feed into mobile will concern many investors, even as we can see those long-term payoffs. … Despite the heavy investments, we still project double-digit revenue & EPS growth in ’25 & ’26, & Meta has a strong track record of driving returns on increased spending.” Ronald Josey, Citi (Buy rating, PT down to $550 from $590): “The key debate coming out of earnings is likely to be around the size and scale of Meta’s multi-year GenAI investment cycle. But unlike previous cycles (Mobile, Stories, Reels), we believe its GenAI investments come from a position of strength whereby Meta is a leader. More NT, the debate likely revolves around the pace of revenue deceleration given 2Q guidance and rising Capex spend. But … we believe Meta continues to have multiple tailwinds, including from Llama 3, Meta AI and Business AI (Agents).” — Alex Harring 5:38 a.m.: Bernstein initiates GM as outperform General Motors’ 2024 gains are only the beginning of a strong period for the automotive giant, according to Bernstein. Analysts Daniel Roeska initiated GM with an outperform rating. His price target of $55 implies upside of 22% over the next 12 months. Roeska noted that GM is “finding its mojo again,” adding: “The company is pivoting from lofty long-term targets back to more tangible shareholder returns.” “We expect 2024’s performance to push the stock higher, while management has four distinct opportunities to realize more value still,” the analyst said. “We are encouraged by stronger cash flows and expect the company to return > $4.5b to shareholders per year.” The note came after General Motors posted earlier this week first-quarter earnings that beat analyst expectations. The company also raised its 2024 guidance . GM shares are up more than 25% year to date. GM YTD mountain GM year to date — Fred Imbert