Stifel has increased its price target on Meta Platforms Inc. (NASDAQ:META) to $820.00 from $785.00 and left its rating on the stock at Buy.
The firm pointed to what it called "very healthy" fourth-quarter results, noting that revenue exceeded the high end of Meta's guidance. Stifel said that the momentum from the fourth quarter appears to have carried into the first-quarter outlook, with foreign-exchange-neutral growth implying a "healthy acceleration" of roughly 5 percentage points versus the fourth quarter.
At the same time, Stifel highlighted components of Meta's initial guidance for 2026 that came in above the firm's expectations. Both the stated ranges for total expenditures and for capital expenditures were higher than anticipated, which Stifel interprets as an indication of increased operating margin compression this year - a trend the firm expects will be concentrated in the Family of Apps segment.
The research team also emphasized Meta's own commentary that the recent elevated spending is not confined to advertising alone. The company pointed to newer products on its roadmap that "sound far broader, albeit likely years away from scaling." Stifel accounted for that messaging in its assessment of near-term margin dynamics while keeping a longer-term view on potential product-driven growth.
On the advertising side, Stifel noted its market checks suggest the "biggest ROIC gains" materialized in the fourth quarter. The firm underscored continued user-base expansion as another positive signal, pointing out Meta's audience remains "already massive" and grew 7% year-over-year.
Other brokerages have also adjusted their views following Meta's latest financials. Evercore ISI raised its price target to $900, and Canaccord Genuity set a new target at $930. Truist Securities increased its target to $900, citing robust first-quarter guidance that projects about 30% growth. DA Davidson moved its price target to $850, reflecting Meta's fourth-quarter outperformance. Oppenheimer, while reiterating a Perform rating, said that the company's fundamentals are at peak levels driven by AI-enhanced engagement and new products.
Together, these revisions from multiple analysts reflect broad positive reassessments of Meta's near-term revenue and engagement trends, even as some firms call attention to rising expenditures and the timeline for new product scale-up.
Summary
Stifel raised its Meta price target to $820 and maintained a Buy rating after stronger-than-expected fourth-quarter revenue and encouraging early-2024 guidance. The firm warned that higher-than-expected 2026 spending guidance could compress operating margins, particularly in the Family of Apps, while noting improvements in advertising returns and sustained user growth.
- Price action and rating: Stifel moves target to $820 from $785 and stays at Buy.
- Revenue and guidance: Fourth-quarter revenue beat the high end of guidance; FX-neutral growth points to an approximate 5 percentage-point acceleration into Q1.
- Spending and margins: Initial 2026 expenditure ranges are above expectations, suggesting increased operating margin pressure this year, especially in the Family of Apps.
Sectors impacted - Technology, Digital Advertising, and Capital Markets.
Risks and uncertainties
- Higher-than-expected total and capital expenditures for 2026 could lead to operating margin compression, affecting profitability in the Technology and Digital Advertising sectors.
- Newer products on Meta's roadmap are described as likely years away from scaling, creating uncertainty around the timing and magnitude of future revenue contributions to the broader Technology and Product Innovation landscape.
- While advertising ROIC improved materially in the fourth quarter, continued advertising strength is an assumption that impacts ad-driven revenue forecasts and market valuation in the Digital Advertising sector.