Meta (META) stock is nearing a $2 trillion market cap, fueled by a strong rally following its Q2 earnings report. The stock recently surpassed its previous high of $737 and reached an all-time peak of $790 yesterday. Looking ahead, Wall Street analysts have given META a Strong Buy rating. Broadly, the market is positive about the stock due to its strong performance and huge investments in artificial intelligence (AI).
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As of Tuesday close, Meta’s market cap was $1.98 trillion. Year-to-date, META stock has surged by 35%, leading the Magnificent Seven in 2025.
Strong Core Business Powers Meta’s AI Push
The standout theme for Meta this year is CEO Mark Zuckerberg’s strong push into generative AI. He plans to invest hundreds of billions in AI infrastructure and offer huge pay packages to attract top talent from competitors.
However, Meta’s latest Q2 earnings show that big spending on new projects can pay off when the core business remains strong. Zuckerberg believes Meta’s core digital advertising is solid enough to support these AI investments. The Q2 results support this view. In Q2, revenue rose 22% to $47.52 billion, while earnings increased 38% to $7.14 per share. Additionally, daily active users across Facebook, Instagram, and other apps increased by 6% to 3.48 billion.
Moving forward, Meta lifted the lower end of its 2025 capital spending forecast to $66–72 billion, up from April’s $64–72 billion range. The company also warned that 2026 expenses would grow faster than in 2025, driven by higher infrastructure costs and rising employee compensation tied to its AI push. On the earnings call, Zuckerberg called the AI push a “massive investment” that will take years to pay off.
Is Meta Stock a Good Buy?
While some investors remain wary of Meta’s hefty AI spending, Wall Street analysts largely backed the strategy, with many raising their price targets after Q2 results while maintaining Buy ratings.
On TipRanks, META stock has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 42 Buys and five Holds assigned in the last three months. The average META price target is $872.5, which is 10.4% above the current trading level.
