Forecast: This AI Stock May Subtly Surpass Wall Street's Top Picks
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Updated: Nov 20 20250mins
Meta's AI Investment: Meta Platforms is significantly investing in AI-driven advertising tools, which have led to increased engagement and ad revenue, despite recent stock struggles due to high capital spending and a tax charge.
Financial Performance: The company reported a 26% year-over-year revenue increase in Q3, reaching $51.2 billion, and its AI tools are generating substantial returns for advertisers, indicating strong growth potential.
Stock Valuation: Meta's stock is currently trading at a lower price-to-sales ratio compared to the tech sector average, suggesting it may be undervalued and poised for significant growth as AI adoption in advertising expands.
Analyst Outlook: Analysts have raised revenue forecasts for Meta, and the company is expected to achieve a revenue run rate of over $60 billion from its AI advertising tools, positioning it for future growth despite current market challenges.
META.O
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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 838.14 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.
42 Analyst Rating
35 Buy
6 Hold
1 Sell
Strong Buy
Current: 639.600
Low
655.15
Averages
838.14
High
1117
Current: 639.600
Low
655.15
Averages
838.14
High
1117
Arete
Rocco Strauss
Neutral -> Buy
upgrade
$718
2025-12-04
New
Reason
Arete
Rocco Strauss
Price Target
$718
2025-12-04
New
upgrade
Neutral -> Buy
Reason
Arete analyst Rocco Strauss upgraded Meta Platforms to Buy from Neutral with a $718 price target.
BNP Paribas Exane
Outperform
initiated
$800
2025-11-24
Reason
BNP Paribas Exane
Price Target
$800
2025-11-24
initiated
Outperform
Reason
BNP Paribas Exane initiated coverage of Meta Platforms with an Outperform rating and $800 price target.
BNP Paribas Exane
Outperform
initiated
$800
2025-11-24
Reason
BNP Paribas Exane
Price Target
$800
2025-11-24
initiated
Outperform
Reason
As previously reported, BNP Paribas Exane initiated coverage of Meta Platforms with an Outperform rating and $800 price target. Meta, which is "only getting better at monetizing" its 3B user base, can afford to aggressively invest in AI to stay ahead of competitors and leverage its dominance in social media to keep winning in social commerce, the analyst tells investors.
Wedbush
Outperform
maintain
$920
2025-11-13
Reason
Wedbush
Price Target
$920
2025-11-13
maintain
Outperform
Reason
Wedbush is adding Meta Platforms to the firm's Best Ideas List and maintains a price target of $920 on the Outperform-rated stock. Sentiment has eased following Q3 results, with investor caution building around the greater expense and capex trajectory implied by management's guidance, the firm notes. Following results, Wedbush is encouraged by robust growth in Meta's core advertising business, positive commentary regarding Meta AI and Superintelligence Labs, and momentum associated with the ongoing rollout of new AI-infused hardware. The firm believes the risk/reward is compelling with limited downside from here following the recent pullback in shares.
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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
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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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