DeepSeek's Stock Drop Highlights Ongoing Threat of Chinese AI.

Written by Emily J. Thompson, Senior Investment Analyst

META+0.09%

UBS+2.54%

GOOG+0.42%

Source: Barron's

Updated: 20h ago

0mins

Source: Barron's

Market Panic: A year ago, the "DeepSeek moment" triggered a significant market panic, resulting in a loss of $1 trillion in value.
Impact Analysis: The event highlighted vulnerabilities in the market and raised concerns about investor confidence and stability.

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: 672.360

Low

655.15

Averages

824.71

High

1117

Current: 672.360

Low

655.15

Averages

824.71

High

1117

KeyBanc

Overweight

downgrade

$875 -> $835

2026-01-26

New

Reason

KeyBanc

Price Target

$875 -> $835

AI Analysis

2026-01-26

New

downgrade

Overweight

Reason

KeyBanc lowered the firm's price target on Meta Platforms (META) to $835 from $875 and keeps an Overweight rating on the shares. The firm believes Meta should benefit from AI product cycles in 2026. However, KeyBanc thinks investment and ROI concerns are priced into Meta, as evidenced by the company's widest price to earnings discount to Alphabet (GOOGL) since 2022.

Roth Capital

Buy

downgrade

$845 -> $800

2026-01-26

New

Reason

Roth Capital

Price Target

$845 -> $800

2026-01-26

New

downgrade

Buy

Reason

Roth Capital lowered the firm's price target on Meta Platforms to $800 from $845 but keeps a Buy rating on the shares ahead of its Q4 earnings. Meta's industry-leading revenue growth, scale advantages, and engagement intensity justify a premium long-term valuation multiple, but the company is currently in the midst of a generational investment cycle centered on AI infrastructure, custom silicon, data centers, and AI-driven operational costs, the analyst tells investors in a research note. First-half catalysts include Frontier AI models from newly formed TBD Labs, ongoing ramp in Andromeda and Generative Ads Model, and likely Prometheus datacenter launch in Ohio, while the tentpole industry events like FIFA World Cup, Winter Olympics, and U.S. Midterm Elections likely offset tougher comps, the firm added.

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Rothschild & Co Redburn

James Cordwell

Neutral -> Buy

upgrade

$740 -> $900

2026-01-26

New

Reason

Rothschild & Co Redburn

James Cordwell

Price Target

$740 -> $900

2026-01-26

New

upgrade

Neutral -> Buy

Reason

Rothschild & Co Redburn analyst James Cordwell upgraded Meta Platforms to Buy from Neutral with a price target of $900, up from $740. The shares could trade down to the mid $500s post the Q4 report if higher costs move down 2026 earnings estimates, the analyst tells investors in a research note. However, Rothschild sees a "disconnect" between the current stock price and Meta's long-term value. At $650, Meta's upside potential far outweighs any near-term risks to the downside, contends the firm. With the company's imminent fiscal 2026 guidance "set to leave estimates factoring in all the cost and little upside from AI, now seems opportune for investors to start building positions," concludes Rothschild. It recommends investors capitalize on any resulting weakness post the Q4 report.

Stifel

Mark Kelley

Buy

downgrade

$875 -> $785

2026-01-23

New

Reason

Stifel

Mark Kelley

Price Target

$875 -> $785

2026-01-23

New

downgrade

Buy

Reason

Stifel analyst Mark Kelley lowered the firm's price target on Meta Platforms to $785 from $875 and keeps a Buy rating on the shares as part of the firm's digital ads Q4 preview. Despite commentary from its Q4 advertising checks supporting "solid" Q4 results, and particular strength from Instagram Reels, the firm believes the bulk of investor attention will be centered on 2026 total and capital expense forecasts, the analyst noted.

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.