Meta Platforms (NASDAQ:META) is heading into its Q4 2025 earnings call today with investor attention running hot. With capital spending guided at $70–72 billion for 2025, the company ranks among the market’s heaviest spenders – and its share price has been swept into bubble worries tied to the vast sums pouring into AI and infrastructure.
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Tech leaders talk about a future measured in trillions, one powered by autonomous cars, intelligent robots, and always-on digital assistants. But for now, those massive opportunities remain more promise than profit, and they are unlikely to show up in quarterly results just yet. The real test for Meta today is whether investors stay patient while waiting for that future to arrive.
While few would question the ability of AI to change the game, there are growing concerns that many companies beyond the semiconductor and cloud computing spheres won’t be able to effectively monetize the revolutionary technology.
That’s where Meta may stand apart, says top investor Adam Spatacco, who is among the top 2% of stock pros covered by TipRanks.
“The company has one of the clearest ways to showcase how AI is already making a positive impact on its business,” Spatacco explains.
Spatacco points to Meta’s AI “advertising empire,” noting that the company is already bringing in the money. The investor believes that the company is using machine learning to analyze its enormous quantities of consumer data, effectively allowing brands to “take the guesswork” out of advertising campaigns.
“Advantage+ is already operating at a $60 billion annual revenue run rate since it launched three years ago. Few developers and infrastructure spenders can reference a similar growth trajectory directly tied to AI,” Spatacco emphasizes.
The investor hastens to add that the success of Advantage+ will raise the costs for customers to switch platforms. Not only will this help to retain clients, but it should also allow Meta to raise prices going forward.
In spite of this winning formula, with a forward price-to-earnings multiple of 22x, Meta is the cheapest of the Magnificent Seven companies. Spatacco posits that the market simply doesn’t trust Meta’s leadership to effectively allocate capital, especially given Mark Zuckerberg’s metaverse flop a few years back.
That being said, however, Wall Street has a much more favorable view, which further supports Spatacco’s investment thesis. With 38 Buys, 6 Holds, and 1 Sell, META carries a Strong Buy consensus rating. Its 12-month average price target of $821.11 points to gains north of 20% in the year ahead. (See META stock forecast)
“In my eyes, Wall Street is right to be so bullish on Meta stock,” concludes Spatacco. (To watch Spatacco’s track record, click here)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.