Meta stock enters 2026 with robust momentum driven by AI integrations and favorable conditions in the ad market, but will substantial capital expenditures hinder earnings? The consensus suggests a solid revenue increase of about 18%, positioning META for potential gains if execution remains strong.
Meta Platforms is upgraded to 'strong buy' after a 15% pullback, entering preferred buy zones as we head into 2026. META's Q3 delivered 26% YoY revenue growth and $7.25 EPS, with robust Q4 guidance despite a one-time $16B non-cash tax charge. The market overreacted to the tax charge; forward cash tax obligations are expected to fall, supporting a GARP thesis for META.
The latest trading day saw Meta Platforms (META) settling at $658.79, representing a +1.29% change from its previous close.
Meta Platforms, Inc. remains a Strong Buy due to its dominant social media position, unmatched data feedstock, and compelling AI-driven growth prospects. META's forward P/E of 21.7 for FY2026 is notably below historical averages, supporting a bullish valuation thesis. Strategic M&A, including the $15B Scale AI stake and $2B Manus acquisition, enhances META's AI agent capabilities and future revenue potential.
Concerns about out-of-control artificial intelligence (AI) spending have cast a shadow of doubt over Meta Platforms NASDAQ: META recently. Despite being up as much as 35% in 2025, the stock ended the year with a total return of just 13%.
A lot of mega-cap tech titans are ending off 2025 on a high note with big acquisitions.
Last year, one of the better performers among the Magnificent 7 was Meta Platforms Inc.
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Among the top Magnificent 7 stocks in the market, Meta Platforms (NASDAQ:META) is clearly a perennial favorite for those thinking long-term.
Shares of Meta Platforms Inc. (NASDAQ: META) gained 1.04% over the past five trading sessions after gaining 1.44% the five prior.
In the most recent trading session, Meta Platforms (META) closed at $666.01, indicating a +1.11% shift from the previous trading day.
The attorney general of the U.S. Virgin Islands has sued Meta Platforms, accusing the Facebook and Instagram owner of deliberately profiting from advertisements for scams and failing to keep its social media platforms safe for children.