Street View: Meta's ad gains to remain supported by AI investments

** Meta Platforms META.O rode strong advertising performance to beat analysts' revenue estimates for the first quarter and match expectations for the next quarter on Wednesday, assuaging investor concerns over tariff-related economic growth fears

** Shares up 6.31% at $583.62 in premarket trade

END JUSTIFIES THE MEANS

** J.P.Morgan ("overweight," PT: $675) says AI-advertisement improvements like Andromeda and GEM are having meaningful impact on monetization for Meta

** "We’re ok with the higher capex outlook as Meta is posting good results & executing along its AI roadmap, w/large long-term ambitions." -J.P.Morgan

** Jefferies ("buy," PT: $700) notes META is making the right investments as its ability to grow user time spent and advertiser spend at this scale would not be possible without the AI investments over the past few years

** Scotiabank ("sector perform," PT: $525) sees META relatively insulated from softening ad demand owing to its international footprint and scale

** Roth MKM ("buy," PT: $620) says improvements in ad performance and Meta's vertical agnostic approach provide greater macro insulation than peers

** Moffettnathanson ("buy," PT: $605) says Meta's application of AI tools should be seen as a critical driver for its revenue recovery

** "As we have learned over the years, a bet on Meta is really a bet on CEO Mark Zuckerberg’s ability to identify and execute the next big new thing," Moffettnathanson said