Meta Platforms (NASDAQ: META) delivered first-quarter financial results above expectations, but the stock tumbled after management said it was going to ramp up spending to support growth initiatives. This clouds the near-term outlook for the company's profits, which is why the stock is falling.

Bernstein lowered its price target from $590 to $565 but maintained an outperform (buy) rating on the shares. Here's why the dip could be a great buying opportunity.

Meta reported solid numbers across the board. Revenue grew 27% year over year, and higher margins boosted earnings per share by 114%. However, the company's investments in artificial intelligence (AI) initiatives will come at a cost that could put the brakes on earnings growth in the near term.

Continue reading

Source Fool.com