Meta Platforms' artificial-intelligence strategy has come with a steep price tag that's giving many investors pause. But what if CEO Mark Zuckerberg's big bet pays off?
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) is set to report its fourth quarter earnings on Wednesday, with Bank of America analysts expecting a modest beat compared to Street expectations while warning that 2026 expense guidance will be the central focus for investors. The analysts maintained their ‘Buy' rating and $810 price target, arguing that current valuations already reflect major AI and infrastructure investment.
Marley Kayden covers Redburn's upgrade on Meta Platforms (META) ahead of its earnings on Wednesday. She notes analysts think the stock could drop around $100 temporarily after the report, and that they think it may be an ideal moment for investors to enter.
In Q3 2025, Meta Platforms NASDAQ: META reported earnings that significantly disappointed investors, leading shares to fall over 11%. Now, with the next report approaching, the Magnificent Seven company is being closely watched.
META leans on AI to boost ad growth ahead of Q4 results, but rising costs and Reality Labs losses weigh on its outlook.
Meta Platforms (META) remains a 'Strong buy' ahead of Q4 2025 earnings, with a compelling valuation and robust business fundamentals. META's core digital advertising business drives expanding gross margins above 82% and TTM cash from operations surpassing $100 billion. Aggressive AI and R&D investments, including the Manus acquisition and AR/VR expansion, position META for leadership in next-gen technologies.
With Meta Platforms (NASDAQ: META) trading at approximately $659 per share, it is currently about 16% lower than its 52-week high.
Meta (NASDAQ: META) stock has had a volatile start to the year, and is, at press time, only 0.48% up in the year-to-date (YTD) chart and changing hands at $663.27.
Over the past decade, Meta Platforms has transformed into a leading capital-return engine, returning $183 billion to shareholders—the sixth-highest total in corporate history.
While Meta Platforms' (NASDAQ: META) stock has had a volatile start to 2026, Wall Street analysts believe the social media giant's equity is likely to see notable growth over the next 12 months, with expectations for double-digit gains.
Meta's deprioritizing virtual reality in favor of artificial intelligence and Internet-connected smart glasses has chilled the VR industry. "The market has spoken," said Jitesh Ubrani, an analyst for IDC, who characterized VR headsets as niche and appealing to only a small segment of video gamers.
Meta is halting teens' access to artificial intelligence characters, at least temporarily, the company said in a blog post Friday.