JPMorgan Downgrades Meta Rating and Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
0mins
Source: CNBC
- Rating Downgrade: JPMorgan downgraded Meta's rating from overweight to neutral and cut its price target from $825 to $725, indicating an 8% upside from Wednesday's close, reflecting a cautious outlook on Meta's future performance.
- Increased Capital Expenditure: Meta raised its full-year capital expenditure outlook to a range of $125 billion to $145 billion from a previous guidance of $115 billion to $135 billion, leading to a more than 9% drop in stock price post-earnings, highlighting investor concerns over high spending.
- Intensifying AI Competition: Despite reporting a 33% year-over-year revenue growth, analysts noted that full-stack AI competition is intensifying, creating a challenging path for Meta to achieve returns on heavy AI capital expenditures, with investors seeking greater clarity on its AI products, which may pressure the stock further.
- Strategic Investment and Market Reaction: Meta's strategic investment exceeding $14 billion in AI, including the acquisition of Scale AI and hiring its CEO, aims to enhance competitiveness; however, shareholders express concerns about Meta's pace in catching up with rivals like Google and Amazon.
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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: 612.910
Low
655.15
Averages
824.71
High
1117
Current: 612.910
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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- Reasonable Market Valuation: Following the stock's rise, Meta trades at about 21 times earnings, reflecting market skepticism about its spending; however, with accelerating core growth, the stock is still considered a worthwhile investment.
See More
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- Cloud Business Initiative: The company is developing a cloud service called Meta Compute, which aims to provide developers access to AI computing power and models, potentially allowing Meta to compete with Amazon and Microsoft's cloud services and convert idle computing capacity into revenue.
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