Meta: Heavy AI Capex and Uncertain Monetization Keep Rating at Hold as Price Target Trimmed to $720 from $730

Analyst Brian Pitz of BMO Capital maintained a Hold rating on Meta Platforms, reducing the price target to $720.00.

Brian Pitz has given his Hold rating due to a combination of factors tied to Meta’s growth outlook and heavy investment plans. While Meta posted better‑than‑expected first‑quarter 2026 revenue and operating income, management’s second‑quarter revenue guidance only matches consensus at the midpoint and full‑year expense expectations remain unchanged, suggesting limited incremental acceleration in the near term.

Pitz is particularly cautious about the sharply higher capital expenditure trajectory, which now runs into the mid‑$100 billion range over 2026–2027 without a clearly defined roadmap to monetize AI at a level that justifies such spend, especially amid intense competitive pressure in frontier models. As a result, he trimmed his price target to $720 from $730 and maintains a Market Perform stance, preferring to see clearer evidence that AI initiatives, custom silicon, and new agent‑like products can translate into faster, more durable earnings growth before turning more positive on the stock.

In another report released today, J.P. Morgan also downgraded the stock to a Hold with a $725.00 price target.

Based on the recent corporate insider activity of 219 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of META in relation to earlier this year.