Brent Thill from Jefferies expressed optimism about Meta’s growth potential, raising its stock price target to $675 and highlighting its strong market position and AI advancements. He also discussed Microsoft’s current challenges despite its AI initiatives, suggesting that major tech companies like Meta, Microsoft, Amazon, and Google will benefit from the anticipated growth in AI technology in the coming years.
In a recent discussion, Brent Thill from Jefferies highlighted the positive outlook for Meta, raising the price target for its stock to $675. He noted that Meta’s stock has surged by 60% this year, positioning the company favorably within the tech landscape. Thill emphasized that Meta is gaining market share and is well-positioned to leverage advancements in artificial intelligence (AI). He mentioned that CEO Mark Zuckerberg’s recent public persona and focus on fitness have positively influenced advertiser sentiment, contributing to the company’s overall business performance.
Thill projected that Meta could achieve consistent mid-teen growth, potentially leading to earnings power of $25 to $30 per share in the coming years. He compared Meta’s valuation to other AI leaders like Microsoft and NVIDIA, which are trading at higher earnings multiples. He suggested that even with the stock’s recent gains, there is still room for growth if Meta can maintain its earnings trajectory and capitalize on its AI investments.
The conversation then shifted to Microsoft, which has been underperforming compared to the S&P 500. Thill noted that many investors have shifted their focus away from Microsoft to other sectors, despite the company’s strong fundamentals and management team. He acknowledged that while Microsoft is making strides in AI monetization, it still represents a small percentage of its total revenue, indicating that the full impact of AI on its revenue is yet to be realized.
Thill also addressed comments made by Salesforce’s CEO, Marc Benioff, regarding Microsoft’s position in the AI space. He dismissed Benioff’s criticisms, asserting that Microsoft’s revenue from AI is significantly higher than Salesforce’s. Thill reiterated that Microsoft is at the forefront of the AI revolution, having partnered with OpenAI, and is well-positioned for future growth.
Looking ahead to the earnings season, Thill suggested that software companies, including Snowflake, could see a resurgence as they invest in AI infrastructure. He recommended focusing on major players like Microsoft, Amazon, Meta, and Google as key investments in the AI space. Thill believes that as AI technology continues to roll out, particularly in 2025 and 2026, these companies will be well-positioned to benefit from the anticipated growth in the sector.