RBC Capital kept an Outperform rating on Meta Platforms Inc. and set a $810.00 price target after reviewing the social-media giant’s fourth-quarter results and guidance for the first quarter. That target implies meaningful upside from the reference price of $668.73. Analyst consensus data from InvestingPro referenced in the review indicates a broadly bullish stance on the stock, with a 1.33 recommendation rating and a noted high target of $1,117.
The note from RBC emphasizes that Meta’s fourth-quarter revenue outperformance combined with a stronger-than-expected first-quarter guide provide coverage for the company’s planned increases in capital and operating expenditures through 2026, which had previously raised investor concern. Meta’s last-twelve-month revenue stood at $189.46 billion, and its gross profit margin was reported at 82.01% — metrics RBC cites in support of the company’s ability to fund the investments.
RBC pointed to specific topline dynamics underpinning the firm’s view. First-quarter guidance ran approximately 10% above consensus, and at the high end the guidance suggested up to a 6-point acceleration versus expectations. The firm attributes that strength in part to AI-enabled product initiatives across Meta’s businesses. Meta’s management also signaled that 2026 is expected to be the year with peak losses for the Reality Labs division.
Valuation indicators included in the analyst commentary show Meta trading at a price-to-earnings ratio of 29.65, with a PEG ratio of 4.21. InvestingPro’s analysis referenced by RBC indicates the company’s market capitalization is $1.69 trillion and that current fair-value assessment places the stock near its fair value. RBC’s modeling adjustments raised revenue and earnings-per-share estimates, while lowering free-cash-flow expectations — an update that underscores the importance of sustained top-line growth to justify ongoing investment levels.
Alongside the positives, RBC flagged several areas of caution. Management’s commentary implied a likelihood of revenue deceleration after the first quarter. The analyst also noted expectations of margin compression and a trajectory for the balance sheet that moves toward positive net debt. InvestingPro data cited in the update describes Meta as operating with a moderate level of debt and generating cash flows sufficient to cover interest obligations, which the note suggests could mitigate some balance-sheet concerns.
Market participants have reacted to Meta’s recent results with a range of target adjustments and maintained positive ratings. In separate updates, Goldman Sachs raised its price target to $835, KeyBanc Capital Markets to $855, Loop Capital reiterated a Buy rating with a $940 target, Stifel moved its target to $820, and Evercore ISI set a new $900 target — the latter noting a roughly 25% upside based on that firm’s 2027 earnings-per-share estimate. RBC’s stance sits within this broader pattern of analysts increasing targets and maintaining favorable views following the quarter.
RBC’s note and the broader analyst reactions underscore a central tension for investors: Meta’s ability to sustain elevated revenue growth remains crucial to justify its valuation and the scale of its planned investments. InvestingPro data cited in the coverage shows a revenue growth trajectory of 21.27%, a metric investors will likely watch closely as guidance and results evolve.
What to watch next
- Whether Meta can sustain the revenue acceleration implied in the first-quarter guide and avoid the revenue deceleration the company signaled could follow.
- The trajectory of margins as Meta balances increased operating and capital spending with profitability targets.
- How Reality Labs’ losses evolve through 2026 and the extent to which balance-sheet metrics shift toward positive net debt.