Shares of Meta Platforms (META) have risen roughly 10% year-to-date, reflecting modest growth amid the ongoing AI boom. Despite this measured gain, analysts remain optimistic about the company’s outlook. Notably, the TipRanks AI Analyst forecast has aligned with Wall Street bulls, reinforcing confidence in META’s long-term growth potential.
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For context, TipRanks’ A.I. Stock Analysis delivers automated, data-driven evaluations of stocks, giving investors a clear and concise snapshot of a stock’s potential. Moreover, TipRanks’ A.I.-driven rating combines insights from multiple models, including OpenAI’s (PC:OPAIQ) GPT-4o and Perplexity’s SonarPro.
Meta Earns Outperform Rating
According to TipRanks A.I. Stock Analysis, META earns a solid score of 77 out of 100 with an Outperform rating based on Google’s (GOOGL) Gemini 2.5 flash. It also assigns a price target of $756.0, implying an upside of 17.6% from current levels.
Overall, Meta’s strong score is largely fueled by exceptional financial performance, including high profitability, solid revenue growth, and a robust balance sheet. This fundamental strength is reinforced by a positive earnings call emphasizing strong execution and a clear AI-driven growth strategy. However, the score is tempered by a bearish technical outlook, as the stock remains in a downtrend.
According to TipRanks’ Technical Analysis, META stock currently has a Neutral rating based on overall consensus and the moving average consensus.
AI Analyst Breaks Down META Stock Outlook
The A.I. analysis also highlights both the positive and negative factors influencing the company’s stock performance.
Among the positive factors, Meta’s strong revenue growth shows high demand for its services and effective ways to make money, supporting long-term growth. Moreover, its AI improvements are increasing user engagement, giving Meta an edge and boosting potential ad revenue. Plus, a healthy cash position lets the company invest in new opportunities and handle economic challenges.
On the other hand, Meta’s rising expenses from infrastructure and compensation could pressure margins and profitability. Significant losses in Reality Labs underscore challenges in monetizing VR/AR investments, potentially weighing on overall financial performance. Below is a screenshot for Meta’s operating expenses over the last few quarters.
Wall Street Stays Bullish on META
Overall, Wall Street remains optimistic on META stock. Recently, a four-star-rated analyst Barton Crockett at Rosenblatt Securities reiterated his Buy rating on META with the highest price target of $1,117. This implies over 70% upside from the current level.
Crockett argued that concerns over Meta’s spending are vastly overstated. In a recent note, he countered the prevailing pessimism, highlighting that Meta’s return on AI investments is “unusually clear,” driven by the strength of its advertising business.
Is META Stock a Buy?
Meta Platforms’ stock has a consensus Strong Buy rating among 42 Wall Street analysts. That rating is based on 35 Buys, six Holds, and one Sell assigned in the last three months. The average META price target of $838.14 implies 30.42% upside from current levels.
