Meta Platforms (META) Delivers Strong Quarter, but Spending Remains in Focus, Stifel Says

Meta Platforms, Inc. (NASDAQ:META) is one of the Buzzing AI Stocks on Wall Street. On January 28, Stifel analyst Mark Kelley reiterated a Buy rating on the stock with a $785.00 price target. The firm highlighted Meta’s robust core performance and outlook, but flagged elevated spending as a key item to watch.

Meta’s revenues rose 24% year-over-year to $59.9 billion, topping Street expectations of $58.5 billion. Meanwhile, it delivered operating income of $24.7 billion with a 41.3% margin, in comparison to consensus estimates of $23.9 billion and a 40.9% margin.

The tech giant posted GAAP earnings per share of $8.88, exceeding Street expectations of $8.21. Moreover, Family Daily Active People reached 3.58 billion, representing a 7% year-over-year growth and aligning with analyst projections. Global ad impressions increased 18% year-over-year, ahead of consensus estimates of 12%. However, average price per ad grew 6%, below the anticipated 10%.

Looking ahead, management guided revenue between $53.5-56.5 billion, which represents 26-34% year-over-year growth and assumes a 4% foreign exchange tailwind, surpassing the consensus estimate of $51.4 billion.

Meta also projected 2026 total expenses in the range of $162-169 billion, which is a 38-44% year-over-year increase and is above consensus of $150 billion. Meanwhile, capital expenditures are anticipated to reach $115-135 billion, which is higher than analyst expectations of $111 billion.

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