Wall Street Optimistic Ahead of Fed Policy Decision
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy META?
Source: stocktwits
- Fed Policy Expectations: The market widely anticipates that the Federal Reserve will hold interest rates steady, with investors keenly awaiting Chair Powell's press conference for insights into future rate trajectories, which could significantly influence market sentiment and investment strategies.
- Tech Earnings Outlook: Nasdaq futures rose by 0.9%, while S&P 500 and Russell 2000 futures increased by 0.3%, indicating investor optimism ahead of earnings reports from tech giants like Meta, Microsoft, and Tesla, potentially boosting their short-term stock performance.
- Surge in Precious Metals Prices: Gold prices surged past $5200 and silver exceeded $114, reflecting strong investor demand for precious metals, which may lead to increased trading volumes in related ETFs like SPDR Gold and iShares Silver Trust, further impacting market dynamics.
- Nvidia Chip Import Approval: China has approved the first batch of Nvidia's H200 AI chips for import, a development that could provide new momentum for Nvidia's expansion in the Chinese market, enhancing its competitive position in the global AI sector.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 643.220
Low
655.15
Averages
824.71
High
1117
Current: 643.220
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.
- Investment Scale: Meta is set to invest $65 million in 2023 to support state politicians favorable to the artificial intelligence industry, marking its largest election investment to date and indicating a growing emphasis on political engagement.
- New Super PACs Established: The company is quietly launching two new super PACs, one backing Republicans and the other supporting Democrats, aiming to leverage political influence to counter regulatory threats to the AI sector.
- Funding Flow and Utilization: Last year, Meta allocated $45 million to the American Technology Excellence Project, with expectations that these funds will flow into the newly established PACs, thereby enhancing the company's political clout.
- Initial Spending Plans: Meta's expenditures are set to commence this week in Illinois and Texas, primarily backing incumbent Democratic and Republican candidates, reflecting the company's strategic inclination to maintain the existing political landscape.
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- Significant Investment Returns: Bill Ackman's investment in Hilton Hotels, initiated in 2018, has shown remarkable growth, with Hilton's stock up 12.8% year-to-date in 2026 and 22% over the last 52 weeks, indicating strong market performance.
- Increased Share Value: As of the fourth quarter, Ackman, through Pershing Square Capital, owned 3,028,664 shares of Hilton, with a current valuation of $942,701,956.64, reflecting an increase of $72,718,222.64 since the end of the fourth quarter, showcasing robust investment growth.
- Comparison with Tech Stocks: While the Magnificent Seven stocks have generally declined in 2026, Hilton's performance stands out, highlighting its significance in Ackman's portfolio, especially as Meta and Amazon saw declines of 0.8% and 9.5%, respectively.
- Future Growth Potential: Hilton started 2026 on a strong note, closing at $287.25 at the end of last year, up from $248.56 in January 2025, suggesting it may continue to drive overall portfolio gains in the coming months.
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Software and Services Stocks Resilience: Contrary to expectations, software and services stocks are not facing demise due to the rise of artificial intelligence.
AI's Impact on the Market: The introduction of AI technologies has not negatively impacted the performance of these stocks as previously feared.
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- User Base Growth: By the end of 2025, Meta Platforms reported 3.58 billion daily active users, reflecting a 7% year-over-year increase, solidifying its position as the world's largest social media company with over 40% global population coverage, significantly enhancing its appeal as a digital advertising platform.
- Advertising Revenue Surge: In 2025, Meta's total ad impressions and average price per ad increased by 12% and 9%, respectively, driving a 22% rise in total revenue, showcasing its robust performance in the advertising market despite rising cost pressures.
- Profitability Challenges: Despite strong growth in advertising, Meta's operating margin dipped to 41% in 2025, primarily due to increased costs from AI infrastructure and losses in its Reality Labs segment, compounded by a one-time $15.9 billion tax charge in Q3 that impacted EPS by 2% for the year.
- Future Growth Potential: Analysts project that Meta's revenue and EPS will grow at CAGRs of 20% from 2025 to 2028, and if its stock trades at a more favorable 25 times forward earnings by early 2028, it could rise over 60% to exceed $1,000 within the next two years, indicating strong long-term investment value.
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- Market Performance: Tech stocks exhibited weakness on Thursday afternoon, indicating a decline in investor confidence in the sector, which could lead to short-term capital outflows.
- ETF Dynamics: The underperformance of the State Street Technology Select Sector SPDR ETF reflects a decreasing market interest in tech stocks, potentially impacting the stock prices of related companies.
- Investor Sentiment: As tech stocks falter, investors may reassess their portfolios, leading to a shift of funds towards other more attractive sectors, thereby affecting the financing capabilities of tech companies.
- Future Outlook: The weak performance of tech stocks may signal market concerns regarding future growth, prompting investors to closely monitor industry trends to adjust their investment strategies.
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- Growing AI Demand: India's AI infrastructure buildout is accelerating, with Tata Group and Tata Consultancy Services collaborating on a project to scale up to one gigawatt, which will drive demand for chipmakers, particularly AMD.
- Local Production Considerations: Super Micro Computer Inc. is weighing options to increase local production in India to meet the expanding AI market, with Managing Director Vik Malyala stating that the company is engaging closely with Indian customers to understand buyer requirements and is adding local staff to support deployments.
- Intensifying Competition: As companies like NVIDIA expand partnerships and infrastructure in India, AMD faces an increasingly competitive landscape, where early design wins and ecosystem relationships will significantly influence long-term chip adoption.
- Supply Chain Pressures: The AI infrastructure buildout is colliding with ongoing supply constraints and allocation concerns in the accelerator market, necessitating AMD to secure long-term memory supply to address the expanding global AI demand.
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