Meta (META) Remains Top Pick Ahead of Q2 Earnings, Says Citi

Meta Platforms, Inc. (NASDAQ:META) ranks among the best magic formula stocks to invest in. Citi analyst Ronald Josey reiterated Meta Platforms, Inc. (NASDAQ:META)’s “Top-Pick” status ahead of the company’s second-quarter earnings on July 15, maintaining the Buy rating and $803 price target.

Although it is still up 340 basis points year-over-year, Citi’s tracking data indicates that Instagram Sponsored Reels ad load decreased 100 basis points from quarter-to-quarter to 24.9% in Q2 2025. This was the first quarterly dip since the firm began tracking this metric in June 2022.

According to Citi, the reason for this quarterly drop in ad load is due to Meta’s more recent AI advertising capabilities producing more relevant, customized ads with higher conversion rates.

With a growing online advertising landscape as a contributing element, the firm believes Meta Platforms, Inc. (NASDAQ:META) is “well-positioned to deliver better than expected results” in its upcoming earnings release.

Meta Platforms, Inc. (NASDAQ:META) is a renowned technology company known primarily for its flagship platforms Facebook, Instagram, and WhatsApp, as well as its revolutionary advances in augmented reality (AR) and virtual reality (VR).

While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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