Analysts are betting on the company as an AI stock, with BNP Paribas Exane initiating coverage with an Outperform rating and an $800 price target. However, Cantor Fitzgerald trimmed its price target. The firm is reportedly in talks to buy billions of dollars worth of AI chips from Google starting in 2027, positioning a major competitor as a direct challenger to Nvidia. The company's AI-powered engagement, ad growth, and user scale are seen as giving it a competitive edge. Despite a strong outlook, the stock sold off heavily following its announcement of significant AI-related spending plans.