Meta Q4 Earnings Beat Fuels New Price Target Hikes On AI, Ad Growth Optimism

Barclays raised its price target to $800 from $770 and highlighted a sharp rebound in advertising momentum, noting that revenue growth above 30% has eased many lingering investor worries.

• Barclays said Meta continues to lead the digital advertising market, with artificial intelligence providing additional upside.
• UBS expects earnings estimates for 2026 and 2027 to rise as Meta begins to realize measurable benefits from its AI strategy.
• Bank of America increased its price target to $885 from $810 while keeping a ‘Buy’ recommendation.

Meta Platforms Inc. (META) drew fresh optimism from Wall Street after several firms lifted their price targets on the social media and advertising giant, citing increasing ad growth and improving returns from artificial intelligence investments. 

Meta stock traded over 8% higher in Thursday’s premarket.

The tech giant posted a fourth-quarter (Q4) revenue of $59.89 billion and earnings per share (EPS) of $8.88, both exceeding the analysts’ consensus estimate of $58.59 billion and $8.02, according to Fiscal AI data. 

Advertising Momentum

Barclays raised its price target to $800 from $770 while reaffirming an ‘Overweight’ stance, according to TheFly. The firm highlighted a sharp rebound in advertising momentum, noting that revenue growth above 30% has eased many lingering investor worries about rising costs and capital intensity.

Barclays said Meta continues to lead the digital advertising market, with artificial intelligence providing additional upside that has yet to be fully reflected in forecasts.

UBS echoed that view, lifting its own price target to $872 from $830 and maintaining a ‘Buy’ rating. The firm expects earnings estimates for 2026 and 2027 to rise as Meta begins to realize measurable benefits from its AI strategy. 

Morgan Stanley, Jefferies and Piper Sandler increased their price targets as well, with Jefferies saying Meta’s strong revenue performance shows that AI-driven growth is proving the value of its investment programs. 

Bank Of America Perspective

Bank of America increased its price target to $885 from $810 while keeping a ‘Buy’ recommendation, citing that Meta’s investment cycle is producing tangible returns. 

According to BofA, Meta is building a powerful infrastructure base while still funding expansion internally, with free cash flow projected to turn positive in 2026. The firm also said losses at Reality Labs are likely to peak this year.

Meta, which owns Facebook, said it plans to spend much more on capital investments in 2026, estimating costs between $115 billion and $135 billion, a sharp increase from about $72 billion spent in 2025.

The Retail Mood

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory while message volume changed to ‘extremely high’ from ‘high’ levels in 24 hours. 

META stock has declined by over 1% in the last 12 months. 

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