A wave of strategic announcements has sharpened Wall Street's focus on Meta Platforms Inc. (NASDAQ:META) as analysts assess how the company is positioning itself for long-term AI growth.
Rosenblatt Stays Bullish On Meta's Strategy
Rosenblatt analyst Barton Crockett maintained Meta with a Buy rating and a $1117 price forecast on Wednesday. The analyst said the price forecast implies 77% upside from the January 13 closing price of $631.09.
The analyst said Meta has dominated headlines in recent days, and he views the developments as deliberate moves to support the company's data center and AGI ambitions.
He noted Meta shifted toward nuclear power plans on Friday, rolled out a new "Meta Compute" initiative on Monday, and added Dina Powell McCormick in a newly created role as President and Vice Chairman.
Crockett also pointed to 10%+ job cuts in the loss-making Reality unit and reports that Meta may double or more planned AR-glasses production with EssilorLuxottica because demand looks strong.
The nuclear push, the Compute initiative, and the Powell McCormick hiring appear sensible, as per the analyst.
He also noted the macro backdrop as supportive for the fourth quarter of 2025 earnings expected in late January or early February.
With Reality headcount reductions and Meta already guiding to big 2026 spending growth, Crockett believed Meta has room to perform better than spending fears if AI-driven revenue gains and AR-glasses momentum continue.
Compute, Power, And Global Expansion Plans
On infrastructure, Crockett cited Zuckerberg's post that Meta Compute will manage ambitions for "tens" of gigawatts of new capacity this decade versus roughly 5 GW today, including the in-process Hyperion and Prometheus mega-plants in Louisiana and Ohio, and "hundreds or more over time."
The analyst said Meta's nuclear plans lift its aspirational U.S. nuclear footprint to 7.7 GW over about a decade, with 3.3 GW tied to higher-confidence power purchase agreements and the rest tied to new development.
He added that Meta may look overseas, especially in the Middle East, to reduce U.S. permitting and gas-infrastructure risks.
Crockett flagged the Pax Silica pact as a way to ease chip exports for overseas AI campuses.
Ads, Reality Labs, And Financial Outlook
The analyst also addressed the ad backdrop.
He noted advertising drives over 98% of Meta sales and that Meta guided for the fourth quarter of 2025 total sales growth of 17% to 24%, with his view and consensus around 21%+.
Crockett said holiday trackers suggest a stronger season than expected when Meta guided.
The analyst also highlighted Meta's recent pattern of beating the high end of guidance.
For Reality Labs, he pegged 2025 revenue at around $2.227 billion with an operating loss of over $17 billion and nearly $20 billion in operating expenses.
Crockett said that reported job cuts of 10%–15% could translate to roughly $500 million to $1 billion in savings, while stronger AR-glasses sales and potential production expansion could help narrow losses in 2026.
The analyst projected fourth-quarter revenue of $58.39 billion and EPS of $8.21.
He expects fiscal 2025 revenue of $199.46 billion and EPS of $29.02.
META Price Action: Meta Platforms shares were down 1.96% at $618.73 at the time of publication on Wednesday, according to Benzinga Pro data.
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