Meta Platforms (META) shares move into negative territory on Thursday as investors weigh artificial intelligence (AI) spending concerns with the company’s third quarter earnings beat. Roth Capital Partners managing director and senior research analyst Rohit Kulkarni joins Morning Brief hosts Julie Hyman and Brad Smith to discuss why he remains bullish on the stock and says now’s the time to buy in at a discount.
With a “high-flying stock like Meta, you need much more high-flying numbers than what they reported yesterday,” Kulkarni says. He explains there were factors that he considers "yellow flag[s]," including some quarterly results coming in “slightly below the elevated expectations that we had heard from investors” and the open-ended question on 2025’s CapEx (capital expenditures) spending.
Despite noting some signs of caution, Kulkarni says “Today is the time to buy,” given “there is going to be an air pocket in Facebook shares” since “there is this period where you have a very important Q4 [fourth quarter] coming up and then an equally important guidance for spend coming up.”
The analyst says he expects there will be “a lot of new improvement coming up where they’re targeting, that engagement, better advertiser ROI [return on investment], better consumer time spent, all of those things just start to amplify the classic flywheel that you want in a network like Facebook. And that’s what we feel very bullish on into next year.”
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