The major risks of 2025 have proven to be non-threatening.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2025
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Should l Buy META?
Source: MarketWatch
Investor Concerns Last Year: A year ago, investors were worried about rising U.S. government bond yields, a potential trade war between the U.S. and China, and the Federal Reserve tightening monetary policy.
Current Market Conditions: As of now, U.S. Treasury volatility is at its lowest since 2021, with 10-year yields recently falling below 4%.
Trade Agreement: The U.S. and China have reached a trade agreement that includes a 12-month truce on tariffs.
Federal Reserve Actions: The stock market is at record highs, and the Federal Reserve has cut interest rates twice, with expectations for further cuts into 2026.
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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: 670.210
Low
655.15
Averages
824.71
High
1117
Current: 670.210
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.
Meta Increases AI Investment, Profitability Under Pressure
- AI Budget Surge: Meta plans to increase its capital expenditures to $135 billion in 2026, an 87% rise from last year, aimed at supporting its AI Superintelligence team, which is expected to drive future technological innovation and market competitiveness.
- Profitability Pressure: As capital expenditures rise, Meta's depreciation expenses increased by 20% in 2025 and are expected to rise further in 2026, leading to a decline in operating margin from 48% in Q4 2024 to 41%, although management still anticipates overall operating income growth.
- AI-Driven Revenue Growth: Meta achieved a 24% revenue growth in Q4, driven by increased user engagement and stable ad price hikes, demonstrating its effectiveness in AI applications and market potential.
- Generative AI Potential: Meta is planning to leverage generative AI to attract more advertisers, combining personalized content and shopping agent features, which is expected to generate substantial ad revenue and further solidify its market position.
See More
Big Tech Stocks Under Market Pressure
- Market Volatility Intensifies: Last week, Big Tech stocks saw over $1 trillion wiped from their market caps, creating a tense market atmosphere, with Oracle and Microsoft rising 1.6% and 0.8% respectively, while Meta and Amazon struggled, reflecting investor concerns over future expenditures.
- Surge in Capital Expenditures: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections nearing $700 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, highlighting a strong investment demand for AI infrastructure.
- Cloud Growth Potential: Despite negative market reactions to Amazon and Alphabet's capex guidance exceeding expectations, analysts believe robust cloud growth will continue to drive stock prices, especially amid accelerating data center demand.
- Increased Management Confidence: In the face of macroeconomic pressures, Bank of America analysts noted that management teams are increasingly confident in their demand forecasts, anticipating full capacity utilization by 2026, indicating a positive outlook for the industry.
See More
Big Tech Stocks Experience Market Volatility
- Market Volatility Impact: Following a week where over $1 trillion was wiped from market caps, Big Tech stocks showed flat performance in premarket trading on Monday, indicating market uncertainty, particularly with rising capital expenditure plans in the AI sector.
- Surge in Capital Expenditure: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections soaring to $660 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, reflecting strong industry confidence in AI investments.
- Divergent Stock Performance: As of 6:12 a.m. ET, Oracle rose 1.5% and Microsoft edged up 0.8%, while Meta and Amazon fell 0.3% and 0.1% respectively, showcasing varied performances among stocks amidst overall market weakness, which could influence investor decisions.
- Cautious Future Outlook: Despite growing margins for cloud companies, analysts warn of potential stock volatility due to macroeconomic pressures; however, management's confidence in demand forecasting may lead to full capacity utilization by 2026, providing some reassurance to investors.
See More
EU Intensifies Antitrust Investigation Against Meta
- Antitrust Preliminary Findings: The European Commission has issued a statement of objections to Meta, preliminarily concluding that the company's exclusion of third-party AI assistants from WhatsApp violates EU antitrust rules, potentially harming market competition and stifling the growth of other AI companies.
- Policy Change Impact: Since January 15, 2025, WhatsApp has only allowed Meta's own AI assistant, effectively banning competitors, which the EU regulator believes could cause serious and irreparable harm to the market, necessitating interim measures to protect competition.
- Market Dominance: The Commission tentatively concludes that Meta is likely to hold a dominant position in the consumer communication applications market within the European Economic Area, with WhatsApp seen as a crucial entry point, and restricting access for third-party AI assistants could further raise barriers to market entry.
- Urgent Protective Measures: The Commission emphasizes the urgent need for protective measures due to the risk of Meta's actions marginalizing smaller competitors, aiming to ensure that rivals can continue to access WhatsApp during the ongoing investigation to maintain effective competition.
See More
Czech Prime Minister Supports Social Media Ban for Children Under 15
- Child Protection Initiative: Czech Prime Minister Andrej Babiš expressed support for a ban on social media for children under 15, emphasizing that experts believe social media is extremely harmful to children, aiming to protect their mental health.
- Legislative Plans: Deputy Prime Minister Karel Havlíček indicated that the government is seriously considering this ban, and if decided, legislation will be proposed this year, demonstrating the government's commitment to child protection.
- Global Trend: Numerous countries worldwide are contemplating restrictions on children's access to social media, with Australia being the first to implement a ban for those under 16, while Spain, Greece, and Denmark have proposed similar measures, reflecting widespread concern for children's mental health.
- Legislative Progress: France's National Assembly has passed a bill banning social media for children under 15, which will now head to the upper house for consideration, further advancing the movement for social media restrictions across Europe.
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Meta Increases AI Investment, Profitability Under Pressure
- AI Budget Surge: Meta plans to increase its capital expenditures to $135 billion in 2026, an 87% rise from last year, aimed at supporting its AI Superintelligence team, which is expected to drive future technological innovation and market competitiveness.
- Profitability Pressure: As capital expenditures rise, Meta's depreciation expenses increased by 20% in 2025 and are expected to rise further in 2026, leading to a decline in operating margin from 48% in Q4 2024 to 41%, although management still anticipates overall operating income growth.
- AI-Driven Revenue Growth: Meta achieved a 24% revenue growth in Q4, driven by increased user engagement and stable ad price hikes, demonstrating its effectiveness in AI applications and market potential.
- Generative AI Potential: Meta is planning to leverage generative AI to attract more advertisers, combining personalized content and shopping agent features, which is expected to generate substantial ad revenue and further solidify its market position.
See More
Big Tech Stocks Under Market Pressure
- Market Volatility Intensifies: Last week, Big Tech stocks saw over $1 trillion wiped from their market caps, creating a tense market atmosphere, with Oracle and Microsoft rising 1.6% and 0.8% respectively, while Meta and Amazon struggled, reflecting investor concerns over future expenditures.
- Surge in Capital Expenditures: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections nearing $700 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, highlighting a strong investment demand for AI infrastructure.
- Cloud Growth Potential: Despite negative market reactions to Amazon and Alphabet's capex guidance exceeding expectations, analysts believe robust cloud growth will continue to drive stock prices, especially amid accelerating data center demand.
- Increased Management Confidence: In the face of macroeconomic pressures, Bank of America analysts noted that management teams are increasingly confident in their demand forecasts, anticipating full capacity utilization by 2026, indicating a positive outlook for the industry.
See More
Big Tech Stocks Experience Market Volatility
- Market Volatility Impact: Following a week where over $1 trillion was wiped from market caps, Big Tech stocks showed flat performance in premarket trading on Monday, indicating market uncertainty, particularly with rising capital expenditure plans in the AI sector.
- Surge in Capital Expenditure: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections soaring to $660 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, reflecting strong industry confidence in AI investments.
- Divergent Stock Performance: As of 6:12 a.m. ET, Oracle rose 1.5% and Microsoft edged up 0.8%, while Meta and Amazon fell 0.3% and 0.1% respectively, showcasing varied performances among stocks amidst overall market weakness, which could influence investor decisions.
- Cautious Future Outlook: Despite growing margins for cloud companies, analysts warn of potential stock volatility due to macroeconomic pressures; however, management's confidence in demand forecasting may lead to full capacity utilization by 2026, providing some reassurance to investors.
See More
EU Intensifies Antitrust Investigation Against Meta
- Antitrust Preliminary Findings: The European Commission has issued a statement of objections to Meta, preliminarily concluding that the company's exclusion of third-party AI assistants from WhatsApp violates EU antitrust rules, potentially harming market competition and stifling the growth of other AI companies.
- Policy Change Impact: Since January 15, 2025, WhatsApp has only allowed Meta's own AI assistant, effectively banning competitors, which the EU regulator believes could cause serious and irreparable harm to the market, necessitating interim measures to protect competition.
- Market Dominance: The Commission tentatively concludes that Meta is likely to hold a dominant position in the consumer communication applications market within the European Economic Area, with WhatsApp seen as a crucial entry point, and restricting access for third-party AI assistants could further raise barriers to market entry.
- Urgent Protective Measures: The Commission emphasizes the urgent need for protective measures due to the risk of Meta's actions marginalizing smaller competitors, aiming to ensure that rivals can continue to access WhatsApp during the ongoing investigation to maintain effective competition.
See More
Czech Prime Minister Supports Social Media Ban for Children Under 15
- Child Protection Initiative: Czech Prime Minister Andrej Babiš expressed support for a ban on social media for children under 15, emphasizing that experts believe social media is extremely harmful to children, aiming to protect their mental health.
- Legislative Plans: Deputy Prime Minister Karel Havlíček indicated that the government is seriously considering this ban, and if decided, legislation will be proposed this year, demonstrating the government's commitment to child protection.
- Global Trend: Numerous countries worldwide are contemplating restrictions on children's access to social media, with Australia being the first to implement a ban for those under 16, while Spain, Greece, and Denmark have proposed similar measures, reflecting widespread concern for children's mental health.
- Legislative Progress: France's National Assembly has passed a bill banning social media for children under 15, which will now head to the upper house for consideration, further advancing the movement for social media restrictions across Europe.
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
