Social media firm Meta Platforms (META) has seen its shares rally over 32% in 2025. However, Freedom Capital Markets’ Saken Ismailov recently downgraded the stock from Buy to Hold despite raising the price target from $680 to $800. The firm said that Meta’s Q2 2025 results beat even the most optimistic forecasts due to a rebound in ad pricing, stronger user engagement, and the use of AI tools. Management also raised revenue guidance and boosted its full-year capital spending plans in order to build its own AI infrastructure.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Furthermore, the launch of new ad formats on WhatsApp is expected to be another key driver in the years ahead. However, these projects will also lead to higher costs, including more depreciation, amortization, and employee expenses, which could slow down earnings growth despite stronger sales. Indeed, this trade-off between faster growth and higher expenses played a big role in Freedom Capital Markets’ decision to adjust its rating.
Nevertheless, the firm remains optimistic about Meta’s long-term potential, especially since it has a leading role in AI and the ability to make money across multiple platforms. As a result, the higher price target demonstrates that Freedom Capital Markets is confident in the firm’s ability to continue growing. However, the downgrade to Hold is due to its concern that the current share price already includes much of the expected earnings increase.
Is Meta a Buy, Sell, or Hold?
Overall, analysts have a Strong Buy consensus rating on META stock based on 42 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $872.50 per share implies 13% upside potential.
