Meta Platforms: Analysts Double Down as Risks Mount

Meta Platforms ( (META) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Meta Platforms is heading into its January 28 fourth‑quarter earnings report with strong Wall Street support but rising scrutiny over costs, legal risks, and its use of artificial intelligence. Analysts expect Q4 2025 earnings per share of about $8.19, only slightly above last year, while revenue is forecast to jump roughly 21% to around $58.35 billion, reflecting solid advertising and user engagement. Despite an 18% share price pullback since Q3, Jefferies’ Brent Thill has reiterated Meta as a “Top Pick” with a $910 target, arguing the stock now trades at an attractive discount to Alphabet and offers compelling risk‑reward if management can manage margins and execute on AI. Thill sees Meta’s recent “all‑star AI hires,” continued AI‑driven ad improvements, and new growth engines such as WhatsApp, Threads, and Llama/AI as key drivers, projecting WhatsApp alone could quadruple revenue to about $36 billion by 2029.

At the same time, Meta faces challenges that investors are watching closely. The company is pouring money into AI, which is pressuring margins at least into 2028 and has prompted some brokers, including Wells Fargo, to trim price targets even as they maintain Buy ratings. Meta is also dealing with legal and regulatory risk: it has temporarily blocked teenagers from using AI characters on Facebook and Instagram while it redesigns the feature and faces a New Mexico trial over alleged failures to protect minors on its platforms. Separately, a smaller firm, Solos Technology, is suing Meta and EssilorLuxottica for alleged patent infringement tied to Ray‑Ban Meta smart glasses, seeking billions in damages and a potential sales injunction. Despite these headwinds, analyst sentiment remains firmly bullish: across recent coverage, Meta holds a Strong Buy consensus with roughly 37 Buys, six Holds, and one Sell, and an average price target around $820 per share, implying more than 20% upside from current levels for investors willing to tolerate legal and spending risks in exchange for long‑term AI and platform growth potential.