Wedbush Securities expects Meta to report a strong Q2 on July 29th, driven by steady ad demand and higher engagement with Meta AI, but investors remain focused on whether rising AI and capital spending will pay off beyond advertising. Wedbush kept a neutral rating and a $671 price target, noting that big capital expenditures on data centers, chips, and tools can weigh on free cash flow and increase depreciation, weakening profit despite strong sales. Most “beyond-ads” bets, like Business AI and new subscription tiers, are still early-stage and not yet meaningfully adding revenue. Wedbush’s longer-term model sees revenue reaching $253 billion in 2026 and $301 billion in 2027, but the stock’s sensitivity shows the market is focused on timing and payback. The key question is capex guidance: if Meta signals higher AI and capex plans, investors may mark down near-term free-cash-flow conversion, but holding the line or giving clearer signs of non-ad revenue could narrow the valuation gap.