Bank of America has reset its stock price target on Meta Platforms (META) following its Q1 earnings report, stating that the social media company delivered a strong quarter that most businesses would be happy to take. Despite this, shares dropped 8% to 9% post earnings and more than 7% year to date, despite being up 14% this month. The company's GAAP EPS of $10.44 beat estimates by $3.78, while revenue rose 33.1% year over year to $56.31 billion. Advertising was the primary growth driver, with ad sales jumping 33% to $55 billion and Family of Apps sales increasing 34% to$55.9 billion. However, the company's increasing capex increases overshadowed the news, with shares dropping 8% and 9% after the earnings announcement. BofA has raised its 20/27 EPS to $3446, which indicates the company sees a significant investment in AI buildout rather than a weakness in its core business. The firm also expects deeper LLM integration to improve ad performance and attract more incremental ad spending.