Meta will release its second quarter financial report after the US stock market closes on July 29th. Deutsche Bank made a forecast for its financial report in its latest research report and stated that Meta's current valuation (approximately 16 times the next 12 months EPS) is lower than the S&P 500, which does not fully reflect the durability of its advertising business and the huge incremental space in areas such as AI subscriptions and cloud services. Maintain a 'buy' rating with a target price of $800: 1 The core advertising business continues to strengthen: Meta 2Q26 is expected to generate approximately $60.5 billion in revenue (a year-on-year increase of 27%), approaching the guidance limit. This growth is mainly driven by AI driven ranking and marketing automation tools such as Advantage+, which have increased advertiser ROI and attracted more budget. Instagram user engagement has maintained double-digit growth, further consolidating its fundamentals. 2. AI research and development has entered a period of rapid explosion: Meta Superintelligence Labs has completed the reconstruction of its computing power stack and entered a more predictable product cycle (such as Muse Spark 1.1). The company's goal is to return to cutting-edge performance levels by the end of the year and plans to transition to a native LLM recommendation architecture in the long term to match content and advertising more accurately. 3. The explicit AI monetization path is becoming increasingly clear: subscription services: covering consumers, AI, and business, expected to generate revenue of $4.5 billion to $15.6 billion by 2027. Business Intelligence Agent: The weekly conversation volume has reached 10 million times (a tenfold increase), and it is expected to start billing based on volume in 2027. Cloud infrastructure: Consider reselling computing power to third parties or providing model APIs, with a potential annual revenue scale of up to $24 billion. 4. Capital expenditures and financial resilience: Although the expected capital expenditures for 2027 have increased to $210 billion to $215 billion, Meta's actual net expenditures will be more controllable through internal customized chip (MTIA) applications and financing from partners such as Hyperion. (Source: Deutsche Bank)