Five Reasons META Could Outperform in 2026, According to Jefferies

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks on the Market's Radar. On January 6, Jefferies analyst Brent Thill reiterated a Buy rating on the stock with a $910.00 price target. The firm is confident in Meta’s growing artificial intelligence capabilities, citing five bullish drivers for 2026.

According to Thill, Meta is set to soar in 2026 driven by five key reasons. First, there is strong potential for upside to estimates, particularly since forecasts assume slower growth and lower profits due to AI spending; thereby creating a low bar.

Moreover, the stock has an attractive risk-reward than Google, whereas Meta’s AI hires are also poised to start delivering real results this year. There also seems to be continued momentum from AI investments in Meta’s Core Flywheel.

The rating update follows follows Meta's $2 billion acquisition of AI agent startup Manus, a Singapore-based developer of general-purpose AI agents, with the goal of enhancing capacity to commercialize AI tools and expand services for SMAs.

“We see 5 reasons for META to outperform in ’26, making it a top pick: 1) strong potential for upside to estimates, with cons assuming revenue growth slows by ~3 pts to 18% y/y and operating margins compress ~500bps to 36% on AI investments — creating a low bar; 2) attractive risk/reward at 22x NTM PE a 6-turn PE discount vs. GOOGL; 3) big AI hires poised to deliver in ’26; 4) continued momentum from AI investments in META’s Core Flywheel; 5) accelerating activation of major incremental rev engines, w/ WhatsApp having potential to grow from a $9Bn run rate today to $36Bn by FY29, with additional upside from Threads & Llama/AI. We see potential for META to do over $33 in FY27 EPS which at 25x multiple = a >$825 stock.”

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 the best short-term AI stock.

READ NEXT: 10 Best AI Stocks to Buy Under $50 and 11 AI Stocks on the Market’s Radar

Disclosure: None.