"Meta stock has declined 1% in the last year, according to , with a 10% pop in pre-market trading after a fourth quarter earnings report that beat expectations and raised guidance. Wall Street sees the stock rising 26% based on 44analysts offering an average 12 month Meta stock price target of $845.76, noted . Perhaps investor optimism can be justified by Meta's 24% Q4 2025 revenue growth to about $60 billion - which beat expectations by about $1.5 billion, earnings per share of $8.88 - 8% above consensus; and a Q1 2026 forecast for about $55 billion - $4.6 billion more than estimates."
"Meta is confident about the future. "In 2025, we rebuilt the foundations of our AI program," Meta CEO Mark Zuckerberg told investors and analysts in a call featured by the Wall Street Journal. "Over the coming months, we're gonna start shipping our new models and products. I expect our first models will be good, but more importantly will show the rapid trajectory we're on," he added."
"After the weak performance of Meta shares in the last year, I am skeptical. Moreover, after failing to transform itself from a social media company to a Metaverse company -- resulting in a huge losses; Meta plans to nearly double its AI spending to as high as $135 billion on AI in 2026, noted the Journal."
Meta reported 24% revenue growth in Q4 2025 to about $60 billion, beating expectations by roughly $1.5 billion, with earnings per share of $8.88, about 8% above consensus. The company forecast approximately $55 billion for Q1 2026, exceeding estimates by $4.6 billion, and pre-market trading rose after the earnings beat despite a roughly 1% stock decline over the past year. Management said it rebuilt AI foundations in 2025 and plans to ship new models and products while potentially increasing AI spending to as high as $135 billion in 2026. Analysts’ average 12‑month target implies significant upside, though skepticism remains given prior Metaverse losses and commercialization risk.
Read at Forbes
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