Temporary Policy Adjustments: Meta announced it is implementing temporary changes to its AI chatbot policies for teenagers in response to safety concerns raised by lawmakers. The adjustments aim to prevent chatbots from discussing sensitive topics such as self-harm, suicide, and disordered eating, as well as inappropriate romantic conversations.
Resource Guidance for Teens: Instead of engaging in potentially harmful discussions, the AI chatbots will direct teenagers to expert resources when necessary. This initiative reflects Meta's commitment to adapting its technology to better protect young users.
Implementation and Duration
Access Restrictions: Teenage users of Meta's platforms, including Facebook and Instagram, will only have access to AI chatbots designed for educational and skill-development purposes.
Rollout Timeline: The changes are set to begin rolling out in the coming weeks across English-speaking countries, although the duration of these temporary modifications remains uncertain.
Legislative and Advocacy Responses
Investigation by Lawmakers: Following a report revealing that Meta's AI chatbots were allowed to engage in romantic conversations with minors, Senator Josh Hawley initiated an investigation into the company's practices. The report highlighted concerning internal guidelines regarding chatbot interactions with children.
Criticism from Advocacy Groups: Common Sense Media released a risk assessment stating that Meta AI should not be used by anyone under 18, citing its involvement in planning dangerous activities and neglecting legitimate support requests. The organization's CEO emphasized the need for a complete overhaul of the system to prioritize safety.
Conclusion
Call for Safety Improvements: The ongoing concerns about the safety of AI interactions with minors have prompted Meta to take immediate action, but advocacy groups stress that fundamental safety issues must be addressed before the technology can be deemed safe for teenage users.
META
$657.15+Infinity%1D
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 832.06 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.
43 Analyst Rating
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 832.06 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.
36 Buy
6 Hold
1 Sell
Strong Buy
Current: 647.510
Low
655.15
Averages
832.06
High
1117
Current: 647.510
Low
655.15
Averages
832.06
High
1117
Morgan Stanley
Brian Nowak
Overweight
downgrade
$820 -> $750
2025-12-11
Reason
Morgan Stanley
Brian Nowak
Price Target
$820 -> $750
2025-12-11
downgrade
Overweight
Reason
Morgan Stanley analyst Brian Nowak lowered the firm's price target on Meta Platforms to $750 from $820 and keeps an Overweight rating on the shares. While the firm is "bullish" into 2026, it is lowering its FY26 and FY27 EPS estimates by about 8% each on the back of 5% and 6%, respectively, higher operating expense expectations and now models $33 of FY27 EPS, the analyst tells investors.
Morgan Stanley
Overweight
downgrade
$820 -> $750
2025-12-11
Reason
Morgan Stanley
Price Target
$820 -> $750
2025-12-11
downgrade
Overweight
Reason
Morgan Stanley lowered the firm's price target on Meta Platforms to $750 from $820 and keeps an Overweight rating on the shares. While the firm is "bullish" into 2026, it is lowering its FY26 and FY27 EPS estimates by about 8% each on the back of 5% and 6%, respectively, higher operating expense expectations and now models $33 of FY27 EPS, the analyst tells investors. Investor sentiment has turned negative, but Meta's revenue runway and innovation are "underappreciated," adds the analyst, who lays out a $1,000 per share "bull case" for the stock.
Mizuho
Outperform
maintain
$815
2025-12-04
Reason
Mizuho
Price Target
$815
2025-12-04
maintain
Outperform
Reason
Mizuho reiterated an Outperform rating and $815 price target on Meta Platforms, saying the firm sees a "significant rally ahead" for the shares. The firm recommends investors add to positions in light of multiple press reports that the company plans to cut up to 30% out of Metaverse spending and was asking managers to identify broader cuts across the company. Metaverse cuts of this magnitude could add roughly $2 per share to the firm's 2026 EPS estimate of $29.50, with Reality Labs losses of roughly $5.85 per share, the analyst tells investors in a research note. The firm suspects some of this development is incremental, but ultimately the plan to cut back in an area viewed as a black hohe alone should give investors more confidence the move to scale up investment in generative AI is not a blank check forever.
BofA
Buy
maintain
$810
2025-12-04
Reason
BofA
Price Target
$810
2025-12-04
maintain
Buy
Reason
BofA reiterated a Buy rating and $810 price target on Meta after Bloomberg reported the company is evaluating up to a 30% reduction in the 2026 Metaverse budget. Since Q3 earnings, when Meta noted that total expenses would grow "significantly" faster in 2026 than in 2025, the stock has been under pressure, the analyst tells investors in a research note. The firm noted that the recent news will likely change assumptions on the magnitude of expense growth downside in 2026/2027 and reinforces the view that Meta remains financially disciplined.
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.
