Stifel has adjusted its price target for Meta Platforms Inc. (NASDAQ:META) downwards to $785 from a previous level of $875, while retaining a Buy recommendation on the shares. Although this lowered target marks a reduction, it still implies a considerable upward potential relative to Meta’s current transaction price of $648.71. Data from InvestingPro indicates that the stock is trading near its assessed Fair Value, with consensus among analysts reflecting a strong buy sentiment.
This modification in price target follows Stifel’s advertising checks that demonstrate solid performance in Meta's fourth quarter, particularly highlighting the momentum sustained by Instagram Reels. Even so, the focus has shifted towards Meta’s long-term financial commitments, specifically relating to total and capital expenditures projected for 2026. This attention is heightened in light of the company's recent announcement of its "Meta Compute" platform.
Stifel’s analysis suggests a potential upward revision for both total expenditure and capital expenditure figures, already positioned approximately 2% and 9% above consensus expectations for 2026, respectively. Adjustments have also been made to the firm’s assumptions regarding operating income from Reality Labs, reflecting the impact of recent workforce reductions at Meta. Furthermore, Stifel has trimmed its valuation multiple to mirror intensified short-term scrutiny on the return on investment (ROI) related to AI-focused expenditure.
On another front, Meta Platforms faces regulatory developments that may affect its operational environment. In Brazil, the company achieved a legal suspension halting an antitrust order that had restricted third-party AI tools on WhatsApp Business. This antitrust measure was issued by Brazil’s competition authority, CADE, amid ongoing competitive practice investigations. Concurrently, the telecommunications regulator in the United Kingdom, Ofcom, is investigating Meta for potentially providing incomplete or inaccurate disclosures concerning WhatsApp during a comprehensive market review.
Amid these regulatory challenges, other financial analysts maintain optimistic stances toward Meta’s stock. HSBC continues to affirm a Buy rating with a price target of $905, underscoring Meta’s early and substantial investments in AI that are supporting its advertising revenue growth. Jefferies offers a similar endorsement, holding a $910 price target and emphasizing the favorable risk/reward window created by recent stock price corrections. Collectively, these factors highlight the complex yet promising position Meta occupies across technological innovation and regulatory scrutiny.