"According to James Cordwell, a senior expert at Rothschild & Co Redburn, Meta's advertising lead and rapidly growing artificial intelligence (AI) footprint will push its stock much higher from here in 2026. Cordwell upgraded the multinational this morning to "buy" and raised his price objective to $900, indicating potential upside of a staggering 38% from current levels. "With imminent FY26 outlook set to leave estimates factoring in all the cost and little upside from AI, now seems opportune for investors to start building positions,""
"In his research report, Cordwell dubbed Meta Platforms' ads business a "demand machine", which he believes could accelerate further by "extending Andromeda, GEM, and Lattice." He recommended long-term investors to stick with Meta shares also because the firm's AI chief, Alexandr Wang, is "better qualified than appreciated." According to him, investors are growing excited again about artificial intelligence as new tech and products like Nvidia's most sophisticated chips (Rubin) roll out in 2026."
Meta Platforms is projected to report $8.15 per share of earnings on $58.4 billion in sales for fiscal Q4, reflecting 1.6% EPS growth and 21% year-over-year revenue growth. Shares trade more than 15% below their 52-week high. A recent upgrade moved the rating to buy with a $900 price objective, implying about 38% upside. The upgrade cites Meta's advertising business as a 'demand machine' and highlights acceleration opportunities from extending Andromeda, GEM, and Lattice. Growing investor enthusiasm for AI, and leadership by AI chief Alexandr Wang, are expected to provide tailwinds as advanced chips roll out in 2026. The stock also yields 0.32% and benefits from significant buyback authorization.
Read at TalkMarkets
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