Analyst revisits Meta stock price target as Zuckerberg drops bombshell

Meta Platforms shares nudged elevated in early Friday buying and selling following a bullish outlook on the social media broad from a high Wall Avenue analyst who sees the inventory as one of his favorite picks heading into the new twelve months.

Fb and Instagram dad or mum Meta (META) turn out to be one of many pinnacle-performing Good-wanting 7 shares final twelve months, rising more than 66% and including more than $630 billion in market price as its family of apps saw solid user boost and ad sales powered elevated amid a resurgence in world online spending.

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Investors are additionally having a guess that Meta's nascent push into AI technologies and the hardware and products this is able to give a boost to will pressure early backside-line boost and offset the "vital amplify in capital spending forecast by CEO Stamp Zuckerberg.

No doubt, in an early Friday Fb put up, Zuckerberg acknowledged that Meta would seemingly spend between $60 billion and $65 billion on capital projects this twelve months, a $32 billion amplify from 2024 ranges and nicely earlier than the Avenue's consensus forecast of around $51 billion.

"I request Meta AI may perchance be the main assistant serving more than 1 billion of us, Llama 4 will turn out to be the main cutting-edge model," Zuckerberg acknowledged. "Here's a huge effort, and over the arriving years this is able to pressure our core products and industry, unlock historical innovation, and lengthen American abilities leadership."

META AI may give a huge boost

Trust analyst Youssef Squali, who reiterated his 'aquire" ranking and $700 price aim on Meta in a demonstrate revealed Friday, sees Zuckerberg's AI focal level as already helping its ad sales momentum.

"Meta’s AI investments are riding greater ranking and recommendation outcomes for users and advertisers, fueling sustained ad spending, severely across CPG and upper and heart funnels," Squali acknowledged. "We additionally sight potential contribution from AI agents and AR/VR products over time."

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Meta will additionally seemingly rob pleasure in the uncertainty surrounding one of many simplest ways ahead for ByteDance-owned TikTok, the immediate-video sharing app that Congress forced to sell its U.S. sources or shut down operations in its most important market.

President Donald Trump gave the crew a 75-day reprieve to acquire a U.S.-based purchaser. Soundless, Meta is already shifting rapidly to carry just a few of TikTok's 170 million users over to its Instagram reels, and various immediate-have video offerings on its platform.

"We scrutinize Meta as a key beneficiary of TikTok's mishaps and as one of our 2025 favorites," Squali acknowledged.

Meta Q4 earnings are instant drawing near.

Meta will post its fourth-quarter earnings on Wednesday, Jan. 29. Analysts request a backside line of $6.77 per fraction, a 27% amplify from the prior-twelve months duration, and revenues rising 17% to $47 billion.

Final topple, Meta estimated earnings in the build of residing of $forty five billion to $48 billion, while total capital spending for the 2024 twelve months may perchance be held largely in line at between $38 billion and $40 billion.

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Squali at Truist acknowledged he's buying for Meta to put up outcomes on the "elevated stop" of its steering however according to broader Avenue forecasts. Taking a perceive into the unusual quarter, he notes that "more sturdy twelve months-on-twelve months comps" will seemingly lead to a modest slowdown in earnings boost, which he pegs between $41 billion and $43 billion.

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Longer-time duration, nevertheless, the inventory stays a compelling epic.

"Meta stays one of our favourite names coming into 2025, a explicit stance that's predicated on sustained seek files from momentum fueled by sturdy products and execution riding fraction positive aspects, and elevated margins despite heavy investments into AI/ML," Squali acknowledged.

Meta Platforms shares were marked 0.7% elevated in early Friday buying and selling to interchange fingers at $640.65 each.

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