SpaceX's xAI Purchase Advances Musk's Vision for a Trillion-Dollar AI Venture
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy META?
Source: Barron's
- Elon Musk's Investment Influence: Elon Musk has solidified his position as a key figure in the investment world with a significant deal in 2026.
- Future Implications: This deal is expected to have lasting effects on the investment landscape moving forward.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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.
Meta Increases AI Investment, Profitability Under Pressure
- 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.
See More
Meta Tests Standalone Platform 'Vibes'
- 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.
See More
AI Investment Surge Led by Meta's Innovations
- AI Investment Trend: Major U.S. tech companies are projected to invest over $630 billion in AI infrastructure by 2026, a figure surpassing the GDP of countries like Singapore or Israel, indicating strong confidence and demand in AI technology.
- Meta's AI Edge: Jensen Huang highlighted that nobody uses AI better than Meta, with its profitability showcasing the success of its generative AI systems in social media and advertising, signaling a larger market potential ahead.
- Nvidia's Market Performance: Nvidia shares surged over 7.5% after Huang stated that demand for AI is “sky high,” reflecting strong market optimism regarding AI infrastructure buildout, which is expected to drive significant future cash flow growth for the company.
- Industry Outlook: Huang mentioned that the AI transformation will span 5 to 8 years, predicting that it will bring “profitable tokens” for involved companies, emphasizing that the demand for computing power will significantly boost revenues.
See More
AI Competition Takes Center Stage in Super Bowl Ads
- Ad Spending Scale: Companies are spending between $8 million and $10 million for 30-second ads during Super Bowl LX, aiming to capture consumer attention and promote new products, highlighting the fierce competition in the advertising market.
- AI Ad Rivalry: OpenAI and Anthropic are competing in Super Bowl commercials, with OpenAI planning to introduce ads in ChatGPT for monetization, while Anthropic uses satirical ads to critique OpenAI, reflecting the tension within the industry.
- Consumer Education: Amazon and Google's ads showcase the positive applications of AI in daily life, with Amazon featuring actor Chris Hemsworth humorously exploring AI's benefits, and Google demonstrating Gemini's utility in a family setting, aiming to enhance consumer acceptance of AI.
- Industry Reactions: OpenAI CEO Sam Altman expressed dissatisfaction with Anthropic's ads, claiming they are misleading, and emphasized OpenAI's mission to make AI accessible to a broader user base, illustrating differing perspectives on business models within the industry.
See More
Nvidia CEO: AI Will Fundamentally Change Computing
- Surging Capital Expenditure: Nvidia CEO Jensen Huang stated that the tech industry's capital expenditures for AI infrastructure are projected to reach $660 billion, which is expected to significantly boost cash flows for companies, enhancing Nvidia's market position and profitability.
- Strong Customer Demand: Major clients like Meta, Amazon, Google, and Microsoft have announced plans to dramatically increase investments in AI infrastructure, reflecting a 'sky-high' demand for computing power that further solidifies Nvidia's leadership in the AI market.
- Transformative Use Cases: Huang highlighted that Meta is transitioning its recommendation system from CPUs to generative AI, while Amazon and Microsoft will leverage Nvidia chips to enhance product recommendations and enterprise software performance, showcasing the broad application potential of AI technology.
- Optimistic Investment Outlook: Nvidia's $10 billion investment in Anthropic last year and plans for significant investment in OpenAI's next fundraising round demonstrate the company's long-term confidence and strategic positioning in the AI sector, which is expected to yield substantial revenue growth.
See More
Reddit Reports Strong Earnings, Stock Volatility Observed
- Strong Earnings Report: Reddit reported fourth-quarter revenue of $726 million, exceeding the market consensus of $665 million, indicating robust performance in its advertising business, which is expected to further drive stock recovery.
- Earnings Beat: The company achieved earnings per share of $1.24, significantly surpassing the analyst estimate of $0.94, demonstrating a notable improvement in profitability that may attract more investor interest.
- Stock Buyback Program: Reddit announced a $1 billion stock repurchase program with no set expiration date, aimed at enhancing shareholder value and boosting market confidence in the company's future prospects.
- Market Volatility Reaction: Despite an initial 9% surge in stock price on Friday morning, shares reversed course to decline nearly 5%, reflecting market caution towards high-volatility stocks, which could influence short-term investor decisions.
See More
Meta Increases AI Investment, Profitability Under Pressure
- 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.
See More
Meta Tests Standalone Platform 'Vibes'
- 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.
See More
AI Investment Surge Led by Meta's Innovations
- AI Investment Trend: Major U.S. tech companies are projected to invest over $630 billion in AI infrastructure by 2026, a figure surpassing the GDP of countries like Singapore or Israel, indicating strong confidence and demand in AI technology.
- Meta's AI Edge: Jensen Huang highlighted that nobody uses AI better than Meta, with its profitability showcasing the success of its generative AI systems in social media and advertising, signaling a larger market potential ahead.
- Nvidia's Market Performance: Nvidia shares surged over 7.5% after Huang stated that demand for AI is “sky high,” reflecting strong market optimism regarding AI infrastructure buildout, which is expected to drive significant future cash flow growth for the company.
- Industry Outlook: Huang mentioned that the AI transformation will span 5 to 8 years, predicting that it will bring “profitable tokens” for involved companies, emphasizing that the demand for computing power will significantly boost revenues.
See More
AI Competition Takes Center Stage in Super Bowl Ads
- Ad Spending Scale: Companies are spending between $8 million and $10 million for 30-second ads during Super Bowl LX, aiming to capture consumer attention and promote new products, highlighting the fierce competition in the advertising market.
- AI Ad Rivalry: OpenAI and Anthropic are competing in Super Bowl commercials, with OpenAI planning to introduce ads in ChatGPT for monetization, while Anthropic uses satirical ads to critique OpenAI, reflecting the tension within the industry.
- Consumer Education: Amazon and Google's ads showcase the positive applications of AI in daily life, with Amazon featuring actor Chris Hemsworth humorously exploring AI's benefits, and Google demonstrating Gemini's utility in a family setting, aiming to enhance consumer acceptance of AI.
- Industry Reactions: OpenAI CEO Sam Altman expressed dissatisfaction with Anthropic's ads, claiming they are misleading, and emphasized OpenAI's mission to make AI accessible to a broader user base, illustrating differing perspectives on business models within the industry.
See More
Nvidia CEO: AI Will Fundamentally Change Computing
- Surging Capital Expenditure: Nvidia CEO Jensen Huang stated that the tech industry's capital expenditures for AI infrastructure are projected to reach $660 billion, which is expected to significantly boost cash flows for companies, enhancing Nvidia's market position and profitability.
- Strong Customer Demand: Major clients like Meta, Amazon, Google, and Microsoft have announced plans to dramatically increase investments in AI infrastructure, reflecting a 'sky-high' demand for computing power that further solidifies Nvidia's leadership in the AI market.
- Transformative Use Cases: Huang highlighted that Meta is transitioning its recommendation system from CPUs to generative AI, while Amazon and Microsoft will leverage Nvidia chips to enhance product recommendations and enterprise software performance, showcasing the broad application potential of AI technology.
- Optimistic Investment Outlook: Nvidia's $10 billion investment in Anthropic last year and plans for significant investment in OpenAI's next fundraising round demonstrate the company's long-term confidence and strategic positioning in the AI sector, which is expected to yield substantial revenue growth.
See More
Reddit Reports Strong Earnings, Stock Volatility Observed
- Strong Earnings Report: Reddit reported fourth-quarter revenue of $726 million, exceeding the market consensus of $665 million, indicating robust performance in its advertising business, which is expected to further drive stock recovery.
- Earnings Beat: The company achieved earnings per share of $1.24, significantly surpassing the analyst estimate of $0.94, demonstrating a notable improvement in profitability that may attract more investor interest.
- Stock Buyback Program: Reddit announced a $1 billion stock repurchase program with no set expiration date, aimed at enhancing shareholder value and boosting market confidence in the company's future prospects.
- Market Volatility Reaction: Despite an initial 9% surge in stock price on Friday morning, shares reversed course to decline nearly 5%, reflecting market caution towards high-volatility stocks, which could influence short-term investor decisions.
See More
