Veteran Strategist Shifts Away from Tech Stocks After 15 Years of Favoring Them
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Should l Buy META?
Source: MarketWatch
Shift in Investment Strategy: Veteran Wall Street strategist Ed Yardeni is changing his investment approach for the first time in 15 years, advising against overweighting technology stocks in S&P 500 portfolios.
Market Outlook: Yardeni's decision reflects a broader reassessment of the information technology and communications services sectors, which he has recommended since 2010, as he looks ahead to 2026.
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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: 649.810
Low
655.15
Averages
824.71
High
1117
Current: 649.810
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.
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- Strong Earnings: Meta reported a 24% revenue growth in Q4 2025, beating market expectations, although the stock has drifted lower post-earnings, indicating investor concerns over future spending.
- Surge in Capex: The capital expenditure forecast for 2026 has been raised to between $115 billion and $135 billion, nearly doubling the $72.2 billion spent in 2025, leading to a divide among investors regarding the sustainability of this spending plan.
- Robust User Growth: Meta's Family of Apps now boasts 3.58 billion daily active users, representing 43% of the global population, showcasing effective AI application in its advertising business with an 18% increase in ad impressions.
- Strong Profitability: Meta anticipates Q1 2026 revenues between $53.5 billion and $56.5 billion, implying growth rates as high as 34%, and despite spending pressures, the company maintains strong cash flow and profitability metrics.
See More
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- Innovation Sandbox: Qatar Foundation Chairperson Sheikha Moza bint Nasser described the event as a 'sandbox of innovation,' highlighting AI's potential to empower small businesses and drive economic growth, particularly as large enterprises face implementation challenges.
- Energy and Data Infrastructure: Attendees discussed the resilience of supply chains, energy systems, and data infrastructure amid rising geopolitical tensions, emphasizing the need for governments to ensure supply and diversification of computing capabilities to meet the demands of the information age.
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- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
See More
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- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
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- Market Reaction: Shares of CBRE, JLL, and Cushman & Wakefield fell on Thursday as investors reassessed the potential impact of AI tools on the commercial real estate services model, heightening concerns about these companies' future profitability.
- AI Impact Assessment: As AI technology rapidly evolves, investors are questioning whether it will reduce the labor embedded in commercial real estate brokerage and advisory work, potentially leading to greater cost pressures and downward pricing risks for these firms.
- CBRE Earnings Highlights: CBRE Group reported a fourth-quarter adjusted EPS of $2.73, exceeding the market expectation of $2.67, although its revenue of approximately $11.63 billion fell slightly short of the anticipated $11.71 billion, demonstrating the company's resilience in profitability.
- Future Outlook: CBRE also issued FY2026 adjusted EPS guidance of $7.30 to $7.60, which was positively received by the market; however, the stock still dropped about 8%, reflecting investor uncertainty regarding the future market environment.
See More
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- Market Risk Concerns: While tech giants like Apple, Google, Amazon, Meta, and Nvidia demonstrate some market resilience, the overall market remains highly dangerous, prompting investors to stay vigilant against potential volatility.
- Financial Performance Analysis: These companies report strong revenue growth in their financial statements; however, market uncertainties could impact future profitability, necessitating investor attention to shifts in macroeconomic indicators.
- Investor Strategy Adjustments: In light of market risks, investors may need to reassess their portfolios, considering a more balanced allocation between tech stocks and other sectors to mitigate potential losses.
- Industry Outlook: Although the performance of tech giants may mask underlying market issues, the long-term growth of the sector still relies on innovation and the stability of market demand.
See More
