Apple and Microsoft Earnings Approach Amidst Stagnant Stocks and Rising Risks: A Change is Needed.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy META?
Source: Barron's
Current Market Conditions: U.S. stocks are experiencing their worst performance since summer, while Treasury bonds are also in decline.
Gold Prices: Gold is testing the $5,000 mark for the first time in history, indicating significant market interest.
Geopolitical Risks: Ongoing geopolitical tensions are influencing market dynamics and investor sentiment.
Upcoming Earnings Reports: The upcoming mega tech earnings reports are critical, given the current high stakes in the financial markets.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 668.690
Low
655.15
Averages
824.71
High
1117
Current: 668.690
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 May Consider Stock Split in 2026
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- Market Performance Analysis: Although Meta's stock has declined over 6% in the past year, its market capitalization remains at $1.7 trillion, indicating the company's strong position and potential investment appeal in the market.
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- Future Outlook: Should Meta's stock gain momentum and rise quickly in the coming year, it may contemplate executing a stock split, aligning itself with other tech giants to attract more investors.
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- Dow Jones Decline: The Dow Jones Industrial Average fell approximately 1.3%, or over 650 points, breaking a three-day winning streak, reflecting investor caution ahead of upcoming inflation data that could influence Federal Reserve rate decisions.
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- Employment Data Impacting Policy Expectations: Despite January's job additions being double the expected amount, the strong labor market has dampened expectations for near-term interest rate cuts by the Fed, increasing uncertainty in the stock market.
See More
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- Disclosure Details: The trades were executed by McGuire's spouse through an IRA, with a maximum disclosed trade size of $15,000, suggesting he may not have been directly involved in the transactions, which raises questions about transparency.
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- Volatility Analysis: Volatility skew data shows that for the March 20 expiration, put options have significantly higher implied volatility than call options, indicating a heightened focus on downside risk, which could lead to increased demand for hedging against Microsoft stock.
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See More
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- Stock Split Motivation: Meta has yet to execute a stock split despite its stock price rising over 200% in the past three years, currently trading around $670, which may deter some investors due to its psychological price barrier.
- Market Performance Analysis: Although Meta's stock has declined over 6% in the past year, its market capitalization remains at $1.7 trillion, indicating the company's strong position and potential investment appeal in the market.
- AI Investment Priority: Meta has recently focused on enhancing its AI capabilities and infrastructure investments, suggesting that a stock split is not a current priority but may be reconsidered in 2026.
- Future Outlook: Should Meta's stock gain momentum and rise quickly in the coming year, it may contemplate executing a stock split, aligning itself with other tech giants to attract more investors.
See More
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- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
See More
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- Revenue Growth: Airbnb's Q4 revenue increased by 12% to $2.78 billion, surpassing analysts' expectations of $2.72 billion, yet the earnings per share of 56 cents fell short of the anticipated 66 cents, indicating pressure on profitability.
- Future Outlook: The company expects Q1 revenue to range between $2.59 billion and $2.63 billion, slightly above analysts' forecast of $2.53 billion, suggesting ongoing growth potential in the market.
- Booking Volume Increase: Airbnb reported 121.9 million nights booked in Q4, a 10% year-over-year increase that exceeded the expected 117.6 million, reflecting strong user demand and platform appeal.
- Management Change: The appointment of Ahmad Al-Dahle as the new CTO signifies a strategic shift in Airbnb's focus on technological innovation, aiming to leverage AI to enhance travel and e-commerce experiences.
See More
US Stocks Plunge Amid AI Disruption Fears
- Tech Stocks Plummet: Fears of potential disruptions from artificial intelligence led to a significant decline in tech stocks, with the Nasdaq Composite dropping over 2% and Apple shares falling around 5%, indicating market anxiety about the future of the tech sector.
- Dow Jones Decline: The Dow Jones Industrial Average fell approximately 1.3%, or over 650 points, breaking a three-day winning streak, reflecting investor caution ahead of upcoming inflation data that could influence Federal Reserve rate decisions.
- Gold and Bitcoin Drop: Gold futures sank 3%, while Bitcoin prices also declined to around $65,000, as investors adopted a risk-off stance, highlighting concerns about the future economic outlook.
- Employment Data Impacting Policy Expectations: Despite January's job additions being double the expected amount, the strong labor market has dampened expectations for near-term interest rate cuts by the Fed, increasing uncertainty in the stock market.
See More
Congressman’s Rapid Microsoft Trade Raises Eyebrows
- Questionable Timing: Congressman John McGuire's rapid buying and selling of Microsoft stock within just 10 days raises concerns about the unusual nature of his trading activities, particularly given his role on the Armed Services Committee, which may present potential conflicts of interest.
- Disclosure Details: The trades were executed by McGuire's spouse through an IRA, with a maximum disclosed trade size of $15,000, suggesting he may not have been directly involved in the transactions, which raises questions about transparency.
- Market Reaction Analysis: Microsoft shares traded between $438.68 and $452.69 at purchase and fell to $426.45 to $439.60 at sale, indicating a potential loss of 5.8%, highlighting the risks associated with his investment decisions.
- Historical Trading Context: Since joining Congress in 2025, McGuire has had minimal trading activity, with previous trades also drawing scrutiny regarding potential conflicts of interest in the healthcare sector, intensifying public scrutiny of his trading behavior.
See More
Analysis of Microsoft's Poor Stock Performance
- Investor Insight: Prominent investor Chamath Palihapitiya highlights that since late November 2022, Microsoft has had the worst stock performance among tech giants, indicating limited returns on its investment in OpenAI, which may lower market expectations and negatively impact stock price.
- Volatility Analysis: Volatility skew data shows that for the March 20 expiration, put options have significantly higher implied volatility than call options, indicating a heightened focus on downside risk, which could lead to increased demand for hedging against Microsoft stock.
- Trading Parameters: According to the Black-Scholes model, Microsoft stock is expected to trade within a range of $402 to $423 over the next 36 days with a 68% probability, suggesting a conservative market outlook where a strong catalyst is needed to drive significant price movement.
- Hedging Strategy: Investors might consider a 410/415 bull call spread, which could yield a maximum profit of 117% if Microsoft stock exceeds $415 at expiration, indicating potential profit opportunities despite the prevailing market risks.
See More
