Meta Platforms (META) Reports Strong Quarterly Results on Advertising Momentum

Meta Platforms, Inc. (NASDAQ:META) is one of the 10 Buzzing AI Stocks on Market Radar. On February 3, Freedom Capital Markets analyst Saken Ismailov raised the price target on the stock to $825.00 (from $800.00) while maintaining a Buy rating. The rating affirmation follows Meta’s fourth-quarter 2025 results.

The tech giant reported earnings that topped estimates and issued stronger-than-expected sales guidance. The company exceeded consensus expectations across all key metrics, the firm noted.

In particular, the company’s top-line growth was supported by record holiday-season demand and AI-driven improvements in ad efficiency. While AI infrastructure capital expenditure did significantly increase as well, Meta’s free cash flow generation was higher than market expectations.

Looking ahead, company management offered optimistic guidance for the first quarter of 2026, reaffirming that absolute operating profit in 2026 will exceed 2025 levels.

The firm particularly highlighted that investors have been reassured that rising capital expenditures are disciplined based on AI-enabled advertising strength and explicit profit targets.  Advertising monetization is anticipated to drive returns over time.

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.

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Disclosure: None. This article is originally published at Insider Monkey.