Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) shares rose nearly 10% to about $735 following its latest earnings report, as Bank of America analysts highlighted accelerating advertising growth and early evidence that artificial intelligence investments are contributing to the company's core business. Meta reported fourth-quarter revenue of $59.9 billion and earnings of $8.88 per share, both above consensus estimates, and guided first-quarter revenue of $53.5 billion to $56.5 billion, exceeding Wall Street expectations.
Meta Platforms is the only company in the Magnificent 7 living up to the name today.
Meta Platforms is upgraded to "Strong Buy" with an $893/share target, reflecting renewed AI-driven growth and strategic capital deployment. META is shifting investment from the Metaverse to AI and wearables, notably Meta AI glasses, positioning Reality Labs for a growth inflection in eFY26. Substantial capital outlays and higher operating costs are expected to compress margins in eFY26 but are seen as necessary groundwork for future profitability.
Meta Platforms ( NASDAQ:META ) had been trading near its 52-week low in early January 2026, as investors worried about its heavy reliance on advertising for 98% of revenues, making earnings volatile compared to its diversified peers.
Shares of Facebook owner Meta Platforms (Nasdaq: META) are surging in premarket trading this morning after the company announced its fourth-quarter 2025 earnings yesterday afternoon.
META tops Q4 estimates with 23.8% revenue growth, boosted by ad strength and rising engagement across its app ecosystem.
After months of being down and out, Meta Platforms NASDAQ: META may have just changed the narrative around its business in a big way. In October, the Magnificent Seven stock tanked 11% after its Q3 earnings report, driven by fears of out-of-control artificial intelligence (AI) spending.
Meta stock has declined 1% in the last year, according to CNBC, with a 10% pop in pre-market trading after a fourth quarter earnings report that beat expectations and raised guidance.
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With its impressive fourth-quarter earnings report, Meta Platforms managed to shake off some concerns about its artificial-intelligence strategy.
Meta Platforms Inc.'s better-than-expected sales outlook helped ease Wall Street concerns about plans for unprecedented spending on artificial intelligence this year. The social networking giant topped projections for holiday quarter revenue and gave a strong forecast for the current period during its earnings report on Jan. 28.
Meta stock has declined 1% in the last year, according to CNBC, with a 10% pop in pre-market trading after a fourth quarter earnings report that beat expectations and raised guidance.