Meta Platforms lost more than $160 billion in market value within 24 hours, yet Wall Street remains confident about its long-term prospects. On July 30, over a dozen analysts shared new 12-month price targets, signaling a potential rebound despite the recent price drop.
Price Targets and Analyst Ratings
Lloyd Walmsley from Mizuho kept his 'Outperform' rating on Meta but lowered the 12-month price target from $835 to $750, suggesting a 10% decrease from his previous forecast. Even with Meta trading around $533 at the time, Walmsley sees a 40% upside opportunity ahead. He emphasized expectations of upcoming AI monetization products, including compute services, coding tools, API access, and business AI solutions, which could drive revenue growth.
Other notable analysts such as Ken Gawrelski from Wells Fargo, Jeffrey Wlodarczak of key Research, and Brad Erickson at RBC Capital reiterated Buy ratings. On average, the 42 analysts surveyed by TipRanks set their 12-month target at approximately $765, indicating a potential 43% increase from current levels.
Market Reaction and Financial Outlook
Meta's shares have slumped more than 11% over the past five days, largely due to quarterly earnings revealing rising AI infrastructure costs that compressed profit margins and free cash flow. These results missed Wall Street expectations, causing the recent sell-off.
Despite this, analysts highlight solid growth prospects fueled by AI monetization efforts and continued strength in advertising revenue, which has accelerated by 60 basis points over two years, excluding currency effects. The firm’s guidance suggests a sequential acceleration in revenue for Q3.
Cost increases projected for fiscal year 2026 mainly stem from a legal fine, while capital expenditure forecasts remain steady through 2027. This balance underpins the optimistic outlook from experts who view current weakness as a buying opportunity.
This material is for informational purposes only and does not constitute financial advice.
