Meta Platforms Poised to Join $4 Trillion Club
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy META?
Source: Fool
- Significant Revenue Growth: Meta Platforms reported a 24% year-over-year revenue increase to $59.9 billion in Q3 2025, surpassing analyst expectations, indicating that its investments in AI are beginning to pay off, despite a drop in stock price due to investment concerns.
- Strong Earnings Guidance: The company expects Q1 2026 revenue between $53.5 billion and $56.5 billion, representing a 30% increase from Q1 2025 at the midpoint, suggesting that Meta will continue to invest in AI while driving revenue growth.
- User Base Expansion: Meta's daily active users reached 3.58 billion, a 7% year-over-year increase, providing more monetization opportunities, particularly through enhanced recommendation algorithms that boost ad revenue and strengthen market competitiveness.
- Future Growth Potential: To reach a $4 trillion valuation in five years, Meta needs a 14.2% compound annual growth rate; while facing potential economic slowdown risks, innovations in AI and e-commerce tools could drive long-term growth.
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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 824.71 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.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 670.210
Low
655.15
Averages
824.71
High
1117
Current: 670.210
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.
- AI Budget Surge: Meta plans to increase its capital expenditures to $135 billion in 2026, an 87% rise from last year, aimed at supporting its AI Superintelligence team, which is expected to drive future technological innovation and market competitiveness.
- Profitability Pressure: As capital expenditures rise, Meta's depreciation expenses increased by 20% in 2025 and are expected to rise further in 2026, leading to a decline in operating margin from 48% in Q4 2024 to 41%, although management still anticipates overall operating income growth.
- AI-Driven Revenue Growth: Meta achieved a 24% revenue growth in Q4, driven by increased user engagement and stable ad price hikes, demonstrating its effectiveness in AI applications and market potential.
- Generative AI Potential: Meta is planning to leverage generative AI to attract more advertisers, combining personalized content and shopping agent features, which is expected to generate substantial ad revenue and further solidify its market position.
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- Standalone App Testing: Meta is testing the standalone 'Vibes' platform, which allows users to create and share only AI-generated videos, aiming to enhance user experience and attract more content creators.
- User Growth Trend: Since its launch within the Meta AI app in September last year, 'Vibes' has gained strong early user engagement, with Meta noting that users are increasingly leaning into this format for creation and sharing.
- Immersive Experience: The new app provides a focused and immersive environment designed to enhance the experience of creating and discovering AI-generated videos, thereby driving user engagement and community interaction.
- Future Expansion Plans: Meta indicated plans to further expand the app based on community feedback, demonstrating the company's commitment to user needs and strategic positioning for future growth.
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- Significant Revenue Growth: Meta Platforms reported a 24% year-over-year revenue increase to $59.9 billion in Q3 2025, surpassing analyst expectations, indicating that its investments in AI are beginning to pay off, despite a drop in stock price due to investment concerns.
- Strong Earnings Guidance: The company expects Q1 2026 revenue between $53.5 billion and $56.5 billion, representing a 30% increase from Q1 2025 at the midpoint, suggesting that Meta will continue to invest in AI while driving revenue growth.
- User Base Expansion: Meta's daily active users reached 3.58 billion, a 7% year-over-year increase, providing more monetization opportunities, particularly through enhanced recommendation algorithms that boost ad revenue and strengthen market competitiveness.
- Future Growth Potential: To reach a $4 trillion valuation in five years, Meta needs a 14.2% compound annual growth rate; while facing potential economic slowdown risks, innovations in AI and e-commerce tools could drive long-term growth.
See More
- AI-Driven Advertising: Meta is implementing AI-driven advertising strategies that are expected to significantly enhance ad effectiveness, thereby driving revenue growth and strengthening market competitiveness.
- Cost Control Measures: The company is adopting disciplined cost-cutting measures aimed at optimizing operational efficiency and reducing expenditures to maintain profitability amid economic uncertainty.
- Analyst Optimism: Analysts are broadly forecasting significant upside for Meta's stock, indicating growing market confidence in its future growth potential, which may attract more investor attention.
- New Phase Initiation: With the application of AI technology and strengthened cost management, Meta could be entering a powerful new growth phase that investors should not overlook, presenting new opportunities.
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- Earnings Beat Expectations: Amazon reported fourth-quarter net sales of $213.39 billion, surpassing Wall Street's expectations of $211.30 billion, indicating strong performance in the e-commerce sector, yet the market reacted negatively due to spending plans.
- Spending Plan Triggers Selloff: CEO Andy Jassy announced a projected $200 billion in capital expenditures by 2026, which spooked investors and led to an 8.34% drop in Amazon's stock price, reflecting concerns over future spending.
- Divergent Market Reactions: Despite Amazon's stock decline, the S&P 500 rose by 0.96% to 6,863.56, and the Nasdaq-100 gained 0.88% to 24,764.51, indicating ongoing market confidence in technology stocks overall.
- Cramer's Perspective: CNBC host Jim Cramer stated on social media that he would defend Amazon, even as he acknowledged a fundamental shift in the market's relationship with mega-cap tech stocks, suggesting that Alphabet is currently the
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