Meta Platforms (NASDAQ: META) Allocates $39 Billion for AI Capital Expenditures in 2024
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Capital Expenditure Plan: Meta plans to allocate $39 billion for AI-related capital expenditures in 2024, with expectations for significant growth by 2026, reflecting CEO Mark Zuckerberg's strong belief in AI's potential and enhancing the company's technical infrastructure.
- Strong User Growth: As of Q3 2025, Meta boasts 3.54 billion daily active users across its social media platforms, providing robust support for its advertising revenue and further solidifying its dominant position in the global tech industry.
- Advertising Revenue Performance: In Q3 2025, Meta generated $50 billion in ad revenue, accounting for 98% of total revenue, with its Advantage+ AI tools effectively lowering costs for advertisers, indicating potential for increased advertising share in global GDP.
- Sustained Profitability Growth: Meta's projected compound annual growth rate for earnings per share (EPS) is 11.6% from 2024 to 2027, combined with a forward price-to-earnings (P/E) ratio of 21.1, suggesting strong profit growth potential under reasonable valuation, attracting investor interest.
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.
