Meta Stock Rises Nearly 7% on AI Strategy and Strong Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Earnings Beat: Meta reported fourth-quarter revenue and profit that exceeded Wall Street expectations, forecasting capital expenditures of $115 billion to $135 billion for 2026, a significant increase from $72.22 billion in 2025, indicating strong growth potential for the company.
- AI Strategy Acceleration: Zuckerberg stated that Meta is accelerating its AI initiatives, expecting 2026 to further drive new product development and company-wide efficiencies, reflecting the company's forward-looking approach to technological innovation.
- Enhanced Personalization: Meta plans to leverage AI to enhance content personalization and interactivity across Instagram, Facebook, and Threads, which is expected to attract more user engagement and improve advertising effectiveness, thereby solidifying its market position.
- Positive Market Reaction: Meta's stock rose 6.6% in after-hours trading, also lifting shares of peers like Alphabet, Pinterest, and Reddit by 1.6% to 2.6%, showcasing investor optimism regarding Meta's future developments.
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: 672.970
Low
655.15
Averages
824.71
High
1117
Current: 672.970
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.
