Meta’s Stock Outlook Remains Positive Amid AI Investments
Wall Street analysts are increasingly optimistic about Meta Platforms (NASDAQ: META), with fresh insights highlighting the company’s growth potential despite recent concerns. A standout analysis from Truist Securities’ Youssef Squali reaffirmed a ‘Buy’ rating, projecting a price target of $875, suggesting an impressive 40% upside compared to the last closing price of approximately $620.
The AI Factor: Why Analysts Are Bullish on Meta
Squali emphasizes that Meta’s current valuation doesn’t fully reflect its advancements in artificial intelligence (AI). Although the company’s heavy focus on AI-related capital and operating expenditures initially raised investor concerns, Truist sees this as a strategic advantage in the medium to long term. At a price-to-earnings (P/E) ratio of around 20 times earnings, Meta appears undervalued when compared to Alphabet (Google’s parent company) and Amazon, both trading at over 30 times earnings.
Strong engagement metrics, enhanced content ranking algorithms, and improved monetization strategies are expected to drive higher earnings. For Q4 2025, Meta is projected to report earnings of $8.29 per share, representing a 3.4% increase from the previous year. Wall Street’s consensus aligns with expectations for robust user engagement and solid revenue growth fueled by Meta’s AI innovations.
Wall Street Sentiment on Meta
The investment community broadly shares a positive outlook on Meta’s stock. According to TipRanks, 37 out of 44 analysts recommend Meta as a ‘Buy,’ with an average 12-month price target of $823.63. This projection equates to a 33% upside, with the boldest prediction nearing $1,117. Such estimates underline confidence in Meta’s ability to capitalize on the growing demand for AI technologies and its overarching digital ecosystem.
What’s Next for Meta?
With the company set to release its earnings report on January 28, 2026, both investors and analysts are closely watching guidance on revenue and expenditure. Key drivers, such as improving AI capabilities and increasing user engagement, are expected to catalyze significant market momentum, ensuring Meta remains competitive against peers like Amazon and Google.
Supported Tools for Smart Investors
Are you looking to invest wisely in stocks like Meta? Consider leveraging platforms like eToro, which offers zero-commission trading on stocks and access to over 3,000 assets, including cryptocurrencies and ETFs. The platform also allows users to copy top investors in real-time. Terms apply, and it’s critical to remember that investment involves risks, including the loss of capital.
Stay updated with Meta’s performance and other market insights to make informed investment decisions in 2026.
