11:40 AM EST, 01/30/2025 (MT Newswires) -- Meta Platforms' ( META ) latest results showed that its revenue continues to deliver upside as the social media giant's graphics processing unit-enabled investments drive returns, Morgan Stanley said on Thursday.

Late Wednesday, the Facebook and Instagram parent reported better-than-expected fourth-quarter results.

However, the company's full-year opex step-up is larger than projected as it continues to invest to capitalize on potential near- and long-term opportunities, which could drive its 2026 per-share earnings down 3%, Morgan Stanley said in a note to clients.

"Meta remains the cleanest GPU-enabled winner in the sector," Morgan Stanley said. "It is investing more than expected but [revenue], engagement and pipeline are all shining."

The firm maintained its overweight rating on the Meta stock. It left its price target on the stock unchanged at $660, but increased its bull case to $900.

"Revenue acceleration and Meta's flowing product pipeline are keys to driving multiple expansion and the path toward the bull case," Morgan Stanley said.

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