Meta Platforms Doubles Down on AI Investment, Can It Achieve Profitability by 2026?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23h ago
0mins
Source: Yahoo Finance
- Strategic Investment: Meta has committed tens of billions to AI infrastructure, reshaping its organization around the Llama open-source model to enhance execution speed in a competitive landscape, despite facing margin pressures.
- Revenue Growth: In the first nine months of 2025, Meta achieved a 26% revenue growth, with AI applications improving ad efficiency, suggesting potential for accelerated revenue growth without increasing ad load in the future.
- Ecosystem Advantage: By positioning Llama as open infrastructure, Meta attracts developers and enterprises into its ecosystem while pushing deployment costs outward, which could enhance Meta's market influence and innovation capabilities if successful.
- Risk Considerations: Despite potential upsides, Meta's AI spending may exceed expectations, and if it fails to achieve anticipated operating leverage, market sentiment could sour, negatively impacting stock performance.
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
36 Buy
6 Hold
1 Sell
Strong Buy
Current: 620.800
Low
655.15
Averages
832.06
High
1117
Current: 620.800
Low
655.15
Averages
832.06
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.
