Breakingviews - H-1B Visa Conflict Will Speed Up the Evaluation of AI Job Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 22 2025
0mins
Should l Buy META?
Source: Reuters
Impact of H-1B Visa Fee: Donald Trump's introduction of a $100,000 fee on new H-1B visa applications poses a risk to American companies' ability to hire top global talent, although the short-term financial impact may be limited due to clarifications that the fee applies only to new applications.
Response Strategies by Companies: Companies are likely to respond by increasing offshoring to countries like India and the Philippines, and by accelerating the adoption of artificial intelligence to optimize workforce needs, potentially undermining the intention to encourage hiring of American graduates in STEM fields.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 661.460
Low
655.15
Averages
824.71
High
1117
Current: 661.460
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Meta's Dividend Potential: With a dividend yield of only 0.3% and a payout ratio of just 9%, Meta has significant room to increase its dividends over time, which could attract more income-seeking investors looking for stability.
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- Long-Term Growth Expectations: Tractor Supply anticipates accelerating sales growth in the future, aiming for annual net sales growth of 6% to 8% and earnings-per-share growth of 8% to 11%, offering investors a promising long-term growth outlook.
See More
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- CapEx Overview: Meta, Amazon, Microsoft, and Alphabet are projected to spend a combined $670 billion in capital expenditures in 2026, with Amazon leading at up to $200 billion, indicating a significant commitment to infrastructure development among these tech giants.
- Historical Comparison: This $670 billion expenditure represents 2.1% of U.S. GDP, ranking just behind the Louisiana Purchase and surpassing other major historical infrastructure projects like U.S. railroads and the interstate highway system, highlighting its strategic significance.
- Investor Caution: Despite aggressive spending, investor concerns about future growth are rising, as Meta and Microsoft's capital expenditures exceed 30% of annual revenue, with Meta potentially surpassing 50% for the first time, which may lead to decreased investor confidence in their stocks.
- Market Performance Volatility: Following the latest earnings reports, the year-to-date stock performance of the four companies varies, with Meta and Alphabet showing relative strength, while Amazon and Microsoft have seen declines, reflecting market ambivalence towards high CapEx amid growth potential concerns.
See More
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- New Mexico Lawsuit: New Mexico Attorney General Raúl Torrez accuses Meta of failing to protect children, claiming its products enable online predators to target minors, seeking not only financial penalties but also product design changes like real age verification.
- Los Angeles Trial: A separate trial in Los Angeles involves Meta and other social media companies, alleging they knowingly designed addictive features harming young users' mental health, with Instagram CEO Adam Mosseri and founder Mark Zuckerberg expected to testify this week.
- Expert Opinions: Legal experts draw parallels between these cases and the landmark tobacco lawsuits of the 1990s, emphasizing that the focus is on whether the product designs themselves pose dangers to users, particularly young people, rather than individual content.
- Future Regulatory Impact: Another major federal trial in California later this year will further test this theory, potentially reshaping how social media platforms are regulated in the United States, influencing the industry's future direction.
See More
Google Plans $20 Billion Bond Sale to Fund AI Investments
- Surging Capital Expenditures: Alphabet anticipates capital expenditures reaching $185 billion in 2025, more than double last year's figures, reflecting the company's significant commitment to AI and infrastructure, which may impact its core advertising profitability.
- Bond Financing Plan: To support its AI ambitions, Alphabet plans to raise $20 billion through a U.S. dollar bond sale, expected to occur in four tranches, including a 100-year sterling bond, indicating strong market interest with oversubscription by five times.
- Compute Capacity Risks: CEO Sundar Pichai highlighted compute capacity, energy, and supply chain constraints as major challenges during the earnings call, indicating that Google must effectively manage its resources to maintain competitiveness amid rapidly growing AI demand.
- Ad Revenue Growth: Despite potential threats from AI to its search and advertising business, Google's fourth-quarter ad revenue increased by 13.5% year-over-year to $82.28 billion, demonstrating the company's success in adjusting its advertising strategies to meet market changes.
See More
