Meta Platforms, Inc. (NASDAQ:META)is one of the AI Stocks Investors Are Watching Closely. On July 16, Cantor Fitzgerald raised its price target on the stock to $828.00 from $807.00, while maintaining an “Overweight” rating. The firm raised its FY26E EPS estimates by 3% and reiterated its Overweight rating / Top pick.
Earnings Preview: “We expect META to report 2Q25E results with a decent upside to consensus on revenues and EPS driven by outperformance in the core ads business as tariff-driven uncertainties moderated in May/June. The company’s 3Q25E revenue guide should indicate stable y/y growth with little deceleration (around $47.5/$48B at the high-end).
On FY outlook, META is likely to reiterate its opex guidance, but recent investments in AI talent (CFe ~$500M–$1B in incremental annual opex) move the target above the low end. Our checks with digital ad agencies and performance marketers in June/early July indicated healthy ad spend and share gains by META in 2Q, including a modest acceleration from April trends (adjusted for Easter).
Additionally, META continues to expand its advertising offerings with new capabilities for A+, a potential tailwind for 2H25E. Overall, we expect a strong quarter from META and see upside revisions to street (Visible Alpha) FY26E EPS of ~$28 per share on the 2Q print.
Investor expectations, admittedly, are elevated with shares trading at 25x FY26E EPS, near the high-end of the midterm valuation range (17–27x). That said, 3Q25E guide with little deceleration in revenue growth should be viewed favorably.
We have raised our FY26E EPS estimates by 3% and reiterate our Overweight rating / Top pick. Our revised PT of $828 is based on 28x FY26E EPS (vs. $807 previously).”
-Analyst Deepak Mathivanan
While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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