12:34 PM EDT, 04/25/2024 (MT Newswires) -- Meta Platforms' ( META ) accelerated artificial intelligence investments are expected to drive more durable engagement and revenue growth, Morgan Stanley said in a note to clients Thursday.

The company said late Wednesday that it expects full-year 2024 capital expenditures to be in the range of $35 billion to $40 billion, compared with $30 billion to $37 billion previously, as it continues to accelerate its AI infrastructure investments.

"We agree with higher investment to come as Meta continues to accelerate AI infrastructure investments for more durable engagement and revenue growth," Morgan Stanley said.

The $39 billion top end of Meta's Q2 revenue guidance was 1% ahead of Morgan Stanley's expectations and the company's Q1 revenue of $36.5 billion was also roughly in line with the firm's forecast, according to the note.

Morgan Stanley maintained its overweight rating and $550 price target on Meta.

Meta's shares were down 11.7% in recent trading Thursday.

Price: 435.76, Change: -57.74, Percent Change: -11.70