Meta's AI Growth Powers Q4 Beat, But Rising Costs Catch AnalystMeta (META, Financial) exceeded expectations in the fourth quarter, with revenue surging 21% year-over-year to $48.39 billion, surpassing the projected $46.98 billion. The company reported a GAAP EPS of $8.02, surpassing estimates by $1.26. However, its Q1 revenue guidance of $39.5B-$41.8B fell slightly below consensus expectations.Analyst InsightsMeta anticipates full-year expenses to range between $114 billion and $119 billion, primarily driven by infrastructure costs. The company also plans to increase capital expenditures to $60 billion-$65 billion, up from $52 billion, to support its AI initiatives. Morgan Stanley emphasized Meta's AI-fueled advertising growth and maintained its price target (PT) at $660, with a bull case of $900. RBC raised its target to $800, citing Meta's leadership in AI. Barclays acknowledged growth potential but cautioned about escalating costs, raising its PT to $705. Bank of America also increased its PT to $765, highlighting the revenue impact of AI. Benchmark upgraded its rating to buy with an $820 PT, pointing out the potential of AI engineering.Despite the increasing infrastructure expenses, analysts remain optimistic about Meta's AI-centric advertising business and expansion endeavors, foreseeing long-term growth prospects.We value your feedback on your GuruFocus.com experience and how we can enhance it!