Meta Platforms (META) has carried its post-Q2 momentum into the present, now trading about 42% above last year’s levels—a striking feat for a $1.8 trillion company. Even so, relative to its growth, the stock is still valued more like a bargain than a premium name within the Mag-7. Growth drivers are lining up: AI-powered ad systems, Reels monetization, WhatsApp business messaging, expanding reach for Meta AI, and steady progress in AI hardware through its Ray-Ban glasses product line.
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With so much tech innovation brewing, my stock price target for META is $850, and I see it arriving sooner rather than later, which is why Meta stock remains one of the largest holdings in my portfolio.
When a Giant Reaccelerates
Meta’s Q2 was nothing short of a showcase. Revenue reached $47.5 billion (+22% YoY), operating margin widened to 43%, EPS came in at $7.14 (+38% YoY), and daily active people climbed to 3.48 billion (+6%). Ad impressions grew 11% while cost per ad rose 9%—the ideal balance that signals a high-performing recommendation engine. At Meta’s scale, these growth rates border on the unbelievable.
Importantly, Q2 wasn’t a one-off spike. For context, Q1 revenue increased 16% YoY, and Q2 accelerated to 22%. Notably, this is in line with last year’s growth, showing no signs of slowing down. This is also evident from the fact that management guided Q3 revenue to $47.5–$50.5 billion (FX a ~1% tailwind), which implies a YoY growth of 21.5%. At Meta’s size, this reacceleration from the mid-teens is the tell that the AI ad stack and engagement tools (Reels, Shops, Click-to-Message) are compounding under the hood.
There’s also the sheer reach, which is quite mind-blowing. With 3.48 billion people using the family daily, tiny improvements in engagement or ad quality scale into big dollars. That’s why the company can raise capex for AI infrastructure and still expand margins. It’s because there’s operating leverage when your baseline is “half the planet.” Q3’s guide and commentary about growth moderating only as they lap a strong 2024 Q4 reinforces that momentum into the back half.
Why the Beat-and-Raise Keeps Working
In the meantime, Wall Street keeps low-balling the stock. In Q2, EPS of $7.14 beat by $1.27 or 21.8%, and revenue cleared consensus by $2.68 billion or a 6% beat. Management, in fact, set the Q3 guidance above the Street again, which was also a welcome surprise given that most mega-caps are tiptoeing. The market’s starting to catch on, but estimates still lag behind the operating reality.
What’s driving the upside that Wall Street still struggles to fully price in? The answer is AI. Smarter ranking is lifting ad conversions and pricing, Reels is capturing more user time, and business messaging is evolving into a true performance channel for SMBs.
At the same time, Meta AI is embedding itself deeper into the consumer experience, closing the gap between discovery and purchase. On the Q2 call, CFO Susan Li emphasized expanding compute, faster models, and tighter integration across Facebook, Instagram, and WhatsApp—all of which are accelerating the flywheel.
Still the Cheapest of the Seven
On forward P/E, Meta sits around 25–26x. Stack that next to Alphabet (~22.9x), Microsoft (~33x), Apple (~29.5x), Amazon (~29.3x), Nvidia (~39–40x), and Tesla (well into triple digits), and you see the setup how Meta is priced near the low end of the group, while printing mid-20s revenue growth and high-30s EPS growth. Relative to its underlying growth, it’s the best deal.
That’s why I see $850/share as a straightforward target. This year’s forecasted EPS of approximately $27.85 implies a 30–31x multiple—still a discount to higher-multiple peers on forward earnings and fair for a company expanding margins while reaccelerating growth. In fact, if AI monetization continues compounding across ads and messaging, $850 could prove conservative.
Note that at the beginning of the year, Wall Street expected $25.42 in EPS. That estimate now stands at $27.85 following two superb quarters, and further expectation hikes shouldn’t surprise anyone. I actually believe $30 in EPS is not unrealistic following a strong holiday season in Q4.
Is META a Buy, Sell, or Hold?
Wall Street remains stoutly bullish on Meta, with the stock carrying a Strong Buy consensus rating based on 41 Buy and six Hold ratings over the past three months. Notably, no analyst rates the stock a Sell. Furthermore, META’s average stock price target of $872.30 suggests 15.5% upside from current levels. Thus, despite the stock’s prolonged rally, there should be plenty of upside from here.
Why META Remains My Top Position with $850 in Sight
Meta is pulling off a challenging feat—accelerating growth at massive scale while simultaneously funding a multi-year AI build-out. Wall Street’s tendency to underestimate this engine has worked in our favor, with a wide gap still existing between forecasts and results, and guidance indicating continued momentum into Q3 and beyond. Risks such as regulation and higher capital expenditures are real, but Meta’s cash machine provides ample flexibility. For me, META remains a top position, and with $850 likely on the horizon, I’m comfortable adding at these levels.