Dan Ives: Tech Stocks Are Experiencing a '1996 Moment,' Not a Bubble Like in 1999
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2025
0mins
Source: Benzinga
Market Outlook: Wedbush Securities analyst Dan Ives believes the recent pullback in Big Tech stocks is a buying opportunity, likening the current market conditions to a "1996 Moment" rather than a "1999 Moment" indicative of a dot-com bust.
AI Revolution: Ives emphasizes that the AI revolution is just beginning, with significant growth potential in global AI infrastructure led by major tech companies like Nvidia, Microsoft, and Amazon, despite ongoing U.S.-China trade tensions.
Investment Strategy: He advises long-term investors to view temporary market sell-offs as prime entry points to buy tech winners, recommending diversified tech ETFs such as QQQ, XLK, and IVES.
Long-Term Perspective: Ives stresses that the AI era is still in its early stages, and investors should focus on the long-term opportunities rather than being swayed by short-term market fluctuations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 612.340
Low
655.15
Averages
824.71
High
1117
Current: 612.340
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meta Platforms Shows Revenue Growth and AI Potential
- Strong Revenue Growth: Meta Platforms demonstrated robust revenue growth and healthy margins as of May 19, 2026, indicating ongoing optimization of its business model, although future cash flow pressures remain a concern.
- AI Advertising Engine Improvement: The company is beginning to show positive impacts of AI technology on its advertising engine, which not only enhances ad effectiveness but may also provide new momentum for future revenue growth, strengthening its competitive position in the market.
- Capital Expenditure vs. Profitability: Despite significant capital expenditures, the ability to achieve real monetization will be a key factor determining stock price direction, prompting investors to closely monitor execution to assess future cash flow performance.
- Investor Advisory: While Meta Platforms shows potential, the Motley Fool analyst team has not included it in their current list of top investment stocks, advising investors to carefully consider other high-return options in their decision-making process.
See More
Meta Launches Paid AI Subscription Plans
- Subscription Launch: Meta AI chatbot will offer two paid tiers, Meta One Plus at $7.99/month and Meta One Premium at $19.99/month, targeting high-frequency users to enhance user engagement and revenue potential.
- Global Expansion Strategy: The subscription plans are initially rolling out in Singapore, Guatemala, and Bolivia, with plans for further expansion, indicating Meta's proactive approach to capturing global market share and diversifying revenue streams.
- Social Platform Paid Plans: Meta has also introduced subscription plans for Instagram, Facebook, and WhatsApp globally, priced at $3.99 and $2.99 per month respectively, providing additional features to attract users and further expand its user base and revenue sources.
- Revenue Structure Analysis: Although subscription revenue remains a small part of Meta's overall income, with $1.29 billion in non-advertising revenue reported in Q1 compared to over $55 billion from advertising, this highlights the company's efforts and potential in diversifying its revenue streams.
See More
Q1 Earnings Strong, AI Investments Continue to Surge
- Earnings Highlights: According to FactSet, 84% of S&P 500 companies exceeded earnings expectations in Q1, resulting in a year-over-year profit growth of 27.7%, indicating resilience in the economy and strong corporate profitability.
- Google Ad Revenue Growth: Alphabet reported a 19% year-over-year revenue growth in Q1, with advertising revenue increasing over 15%, suggesting that advertisers remain aggressive in their spending on Google Ads, reflecting its high cost-effectiveness even in uncertain economic conditions.
- Meta User Growth Slowdown: Meta's Q1 revenue reached $56.3 billion, surpassing expectations, but daily active user growth slowed to only 4%, the lowest in years, leading to investor concerns about future AI investments, with capital expenditures expected to rise to between $125 billion and $145 billion.
- Nvidia's Strong Performance: Nvidia reported Q1 revenue of $81.6 billion, an 85% year-over-year increase, with earnings per share of $1.87, exceeding expectations, showcasing robust growth in its data center business and projecting a continued revenue growth potential of 95% for the upcoming quarter.
See More
Mistral AI Plans to Design Its Own Chips
- Semiconductor Ambitions: Mistral AI's CEO Arthur Mensch revealed the company's exploration into designing its own chips, aiming to reduce AI model deployment costs while currently relying on Nvidia, which underscores its strategic intent to enhance market competitiveness.
- Data Center Expansion: Mistral has invested €4 billion in a new data center in France to ramp up compute capacity, addressing the urgent demand from AI labs and customers, highlighting the pressing need for infrastructure development in Europe.
- Enterprise Platform Launch: Mistral unveiled a new enterprise agent platform called 'Vibe', designed to compete with U.S. rivals like OpenAI and Anthropic by offering automated task execution capabilities, further driving the company's revenue growth.
- Revenue Target Increase: Mistral aims to achieve €1 billion in revenue by 2026, a significant increase from €200 million in 2022, yet still dwarfed by the financial scales of OpenAI and Anthropic, reflecting the challenges it faces in the market.
See More
Q1 Earnings Summary: Tech Stocks Shine
- Overall Profit Growth: According to FactSet, 84% of S&P 500 companies exceeded earnings expectations, driving a 27.7% year-over-year profit growth in Q1, indicating signs of economic recovery despite uncertainties.
- Google Ad Revenue Acceleration: Alphabet reported a 19% year-over-year revenue growth in Q1, with advertising revenue increasing over 15%, suggesting that advertisers are ramping up spending even in a challenging economic environment, highlighting the effectiveness of Google Ads.
- Bank of America Credit Loss Decline: Despite U.S. household debt reaching a record $18.8 trillion, Bank of America's provision for credit losses fell from $1.48 billion last year to $1.35 billion this quarter, indicating strong consumer repayment capacity, which may support the banking sector.
- Walmart Facing Cost Pressures: Walmart's Q1 revenue grew by 5.9%, but it absorbed approximately $175 million in operating income due to rising fuel costs, leading to expectations of higher retail price inflation, reflecting potential impacts on consumer spending from persistent inflation.
See More
Meta Launches New Subscription Services, Stock Rises
- Subscription Service Launch: Meta has introduced Facebook Plus and Instagram Plus at $3.99 per month, with WhatsApp Plus at $2.99 and Meta AI starting at $7.99, which is expected to create a stable revenue stream and enhance user engagement.
- Cloud Computing Potential: During the annual shareholder meeting, CEO Mark Zuckerberg indicated that Meta might enter the cloud computing market if it overspends on data centers, signaling the company's intent to explore new revenue sources in a competitive landscape against Amazon and Microsoft.
- Increased AI Investment: Meta raised its 2026 guidance for AI-related capital expenditures to between $125 billion and $145 billion, demonstrating a strong commitment to AI development while continuing to invest in data centers and engineering talent even after recent layoffs.
- Positive Market Reaction: Meta's stock rose 3.4% to a one-month high, although it remains down 3.7% year-to-date; however, analysts are optimistic about its future, with 58 out of 64 analysts rating it as a 'Buy' and an average price target of $826.75, implying a 30% upside.
See More
Meta Platforms Shows Revenue Growth and AI Potential
- Strong Revenue Growth: Meta Platforms demonstrated robust revenue growth and healthy margins as of May 19, 2026, indicating ongoing optimization of its business model, although future cash flow pressures remain a concern.
- AI Advertising Engine Improvement: The company is beginning to show positive impacts of AI technology on its advertising engine, which not only enhances ad effectiveness but may also provide new momentum for future revenue growth, strengthening its competitive position in the market.
- Capital Expenditure vs. Profitability: Despite significant capital expenditures, the ability to achieve real monetization will be a key factor determining stock price direction, prompting investors to closely monitor execution to assess future cash flow performance.
- Investor Advisory: While Meta Platforms shows potential, the Motley Fool analyst team has not included it in their current list of top investment stocks, advising investors to carefully consider other high-return options in their decision-making process.
See More
Meta Launches Paid AI Subscription Plans
- Subscription Launch: Meta AI chatbot will offer two paid tiers, Meta One Plus at $7.99/month and Meta One Premium at $19.99/month, targeting high-frequency users to enhance user engagement and revenue potential.
- Global Expansion Strategy: The subscription plans are initially rolling out in Singapore, Guatemala, and Bolivia, with plans for further expansion, indicating Meta's proactive approach to capturing global market share and diversifying revenue streams.
- Social Platform Paid Plans: Meta has also introduced subscription plans for Instagram, Facebook, and WhatsApp globally, priced at $3.99 and $2.99 per month respectively, providing additional features to attract users and further expand its user base and revenue sources.
- Revenue Structure Analysis: Although subscription revenue remains a small part of Meta's overall income, with $1.29 billion in non-advertising revenue reported in Q1 compared to over $55 billion from advertising, this highlights the company's efforts and potential in diversifying its revenue streams.
See More
Q1 Earnings Strong, AI Investments Continue to Surge
- Earnings Highlights: According to FactSet, 84% of S&P 500 companies exceeded earnings expectations in Q1, resulting in a year-over-year profit growth of 27.7%, indicating resilience in the economy and strong corporate profitability.
- Google Ad Revenue Growth: Alphabet reported a 19% year-over-year revenue growth in Q1, with advertising revenue increasing over 15%, suggesting that advertisers remain aggressive in their spending on Google Ads, reflecting its high cost-effectiveness even in uncertain economic conditions.
- Meta User Growth Slowdown: Meta's Q1 revenue reached $56.3 billion, surpassing expectations, but daily active user growth slowed to only 4%, the lowest in years, leading to investor concerns about future AI investments, with capital expenditures expected to rise to between $125 billion and $145 billion.
- Nvidia's Strong Performance: Nvidia reported Q1 revenue of $81.6 billion, an 85% year-over-year increase, with earnings per share of $1.87, exceeding expectations, showcasing robust growth in its data center business and projecting a continued revenue growth potential of 95% for the upcoming quarter.
See More
Mistral AI Plans to Design Its Own Chips
- Semiconductor Ambitions: Mistral AI's CEO Arthur Mensch revealed the company's exploration into designing its own chips, aiming to reduce AI model deployment costs while currently relying on Nvidia, which underscores its strategic intent to enhance market competitiveness.
- Data Center Expansion: Mistral has invested €4 billion in a new data center in France to ramp up compute capacity, addressing the urgent demand from AI labs and customers, highlighting the pressing need for infrastructure development in Europe.
- Enterprise Platform Launch: Mistral unveiled a new enterprise agent platform called 'Vibe', designed to compete with U.S. rivals like OpenAI and Anthropic by offering automated task execution capabilities, further driving the company's revenue growth.
- Revenue Target Increase: Mistral aims to achieve €1 billion in revenue by 2026, a significant increase from €200 million in 2022, yet still dwarfed by the financial scales of OpenAI and Anthropic, reflecting the challenges it faces in the market.
See More
Q1 Earnings Summary: Tech Stocks Shine
- Overall Profit Growth: According to FactSet, 84% of S&P 500 companies exceeded earnings expectations, driving a 27.7% year-over-year profit growth in Q1, indicating signs of economic recovery despite uncertainties.
- Google Ad Revenue Acceleration: Alphabet reported a 19% year-over-year revenue growth in Q1, with advertising revenue increasing over 15%, suggesting that advertisers are ramping up spending even in a challenging economic environment, highlighting the effectiveness of Google Ads.
- Bank of America Credit Loss Decline: Despite U.S. household debt reaching a record $18.8 trillion, Bank of America's provision for credit losses fell from $1.48 billion last year to $1.35 billion this quarter, indicating strong consumer repayment capacity, which may support the banking sector.
- Walmart Facing Cost Pressures: Walmart's Q1 revenue grew by 5.9%, but it absorbed approximately $175 million in operating income due to rising fuel costs, leading to expectations of higher retail price inflation, reflecting potential impacts on consumer spending from persistent inflation.
See More
Meta Launches New Subscription Services, Stock Rises
- Subscription Service Launch: Meta has introduced Facebook Plus and Instagram Plus at $3.99 per month, with WhatsApp Plus at $2.99 and Meta AI starting at $7.99, which is expected to create a stable revenue stream and enhance user engagement.
- Cloud Computing Potential: During the annual shareholder meeting, CEO Mark Zuckerberg indicated that Meta might enter the cloud computing market if it overspends on data centers, signaling the company's intent to explore new revenue sources in a competitive landscape against Amazon and Microsoft.
- Increased AI Investment: Meta raised its 2026 guidance for AI-related capital expenditures to between $125 billion and $145 billion, demonstrating a strong commitment to AI development while continuing to invest in data centers and engineering talent even after recent layoffs.
- Positive Market Reaction: Meta's stock rose 3.4% to a one-month high, although it remains down 3.7% year-to-date; however, analysts are optimistic about its future, with 58 out of 64 analysts rating it as a 'Buy' and an average price target of $826.75, implying a 30% upside.
See More
