Meta Platforms' Share Price Rises 1,640% Since IPO; AI Investment Projected at $70 Billion

Written by Emily J. Thompson, Senior Investment Analyst

META+0.41%

Source: Fool

Updated: 2h ago

0mins

Source: Fool

Significant Share Price Growth: Since its IPO in May 2012, Meta Platforms' share price has surged 1,640%, meaning a $58,000 investment at that time would now be worth $1 million, reflecting the company's strong performance and profitability over the past 14 years.
AI Investment Plans: Meta is projecting capital expenditures of $70 billion to $72 billion in 2025 to enhance its technical infrastructure, aiming to stay competitive in the AI sector and ensure its leadership in future markets.
Advertising Revenue Growth: In Q3, Meta's ad revenue increased by 26% year-over-year, indicating exceptional performance in digital advertising, with CEO Zuckerberg believing that AI will further expand the total addressable market for digital ads.
Large User Base: Meta's family of apps reached 3.54 billion daily active users in Q3, and the powerful network effects encourage users to continue using these platforms, thereby strengthening the company's market position and competitiveness.

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: 658.770

Low

655.15

Averages

832.06

High

1117

Current: 658.770

Low

655.15

Averages

832.06

High

1117

Wedbush

Outperform

NULL

downgrade

$920 -> $880

2025-12-19

New

Reason

Wedbush

Price Target

$920 -> $880

2025-12-19

New

downgrade

Outperform

NULL

Reason

Wedbush lowered the firm's price target on Meta Platforms to $880 from $920 and keeps an Outperform rating on the shares. Meta is the firm's top advertising pick for 2026, supported by resilient digital ad trends, strong adoption of Advantage+, and monetization of new channels, the analyst tells investors in a research note. Margins are expected to contract next year, though additional cost discipline could provide upside, Wedbush says.

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.

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.