Meta Platforms, Inc. is experiencing a positive shift in its advertising momentum ahead of its Q2 earnings report, with analysts raising their price targets for the stock. Benchmark analyst Mark Zgutowicz increased the price target from $640 to $800, maintaining a 'Buy' rating. The firm anticipates stable top-line results driven by steady e-commerce trends and strong ad pricing in the US and Canada. The company has seen an acceleration in these markets over the past two quarters, and improvements in revenue per advertiser are expected due to recent enhancements in its advertising tools.

The upcoming earnings call is expected to focus on CEO Mark Zuckerberg's significant investments in AI infrastructure, which he has pledged to be in the hundreds of billions. Analysts believe that these investments will play a crucial role in Meta's future growth and operational efficiency. The company is also expected to maintain its capital expenditure guidance for 2025 while slightly increasing its operating expense guidance. Despite the optimism surrounding Meta, some analysts suggest that other AI stocks may offer greater upside potential with less risk.