Neuberger Berman Senior Research Analyst Dan Flax said Meta's artificial intelligence revenue streams will not become substantial until 2028, offering a timeline that tempers investor expectations around the company's AI spending.
Flax said, "In the core digital advertising business, you're going to see an improved experience, and that will manifest itself in incremental advertising dollars over the course of 2027." He added, "I think we could see more signs of that and a little bit of revenue later next year and more so in 2028."
Flax covers technology companies for institutional investors at Neuberger Berman, a private investment manager. His analysis carries weight among institutional traders and portfolio managers tracking Meta's AI roadmap.
Meta shares closed down 1.6 percent at $694.25. The decline comes as investors grapple with uncertainty over when the company's heavy AI investments will translate into measurable profit growth.
