Meta Platforms (META) is ramping up its push into artificial intelligence. Shares rose over 2% on Thursday after Bloomberg reported the company is in talks to acquire PlayAI, a startup known for human-like AI voice tech. In a new update, UBS Top Analyst Stephen Ju raised his price target on Meta from $683 to $812, citing stronger confidence in the company’s ability to unlock new revenue from AI. He maintained a Buy rating on the stock.
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UBS Sees Big AI Opportunity in Meta Platforms
The five-star analyst believes Meta is in a strong position to benefit from rising demand for AI tools. He pointed to business messaging and the Meta AI assistant as the most promising tools for generating new revenue. CEO Mark Zuckerberg also highlighted both as key AI priorities during the company’s Q1 earnings call.
According to UBS, these tools could bring in new revenue sooner than others. While some tech firms may face weaker demand for AI products from businesses, Ju sees Meta as better positioned. That’s because Meta mostly builds and uses its own AI systems, making it less dependent on outside buyers. This helps protect the company from slower enterprise spending.
Ju also noted that while Meta’s forecasts already account for higher AI spending and hiring, the potential revenue from these tools isn’t yet built into UBS’s or Wall Street’s estimates. This leaves room for upside if Meta starts seeing results from its AI efforts.
Even though Meta’s latest Llama 4 AI model received mixed feedback, UBS still sees the company as a leading player in consumer AI. Meta is also stepping up AI hiring and putting more resources into long-term projects across Facebook, Instagram, WhatsApp, and its new AI features.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 42 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. At $714.26, the META average share price target implies a 1.63% downside potential.
