Meta's AI Ambitions Keep Expanding. Is META Stock Keeping Up?
This financial analysis from 24/7 Wall St. examines Meta Platforms (META) stock performance amid its aggressive AI spending. Despite a Q1 2026 earnings beat (EPS $10.44, 57% above consensus), shares fell 8.55% due to investor concerns over rising capital expenditure, with full-year capex guidance raised to $125-145 billion. The article sets a 12-month price target of $892.70 (38% upside) with a buy recommendation. It highlights Meta's dominant scale advantage with 3.56 billion daily active users across its Family of Apps, and ad revenue growth (19% impression increase, 12% price per ad increase). However, risks include Reality Labs' $4 billion quarterly operating loss, potential regulatory trials, and a possible $10 billion AI deal with Anthropic. The analysis compares Meta unfavorably to Alphabet's higher capex ($175-185B) and Pinterest's 631 million MAUs, while noting 57 analyst buy ratings versus zero sells.
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