In a survey of 44 sell-side analysts, Meta Platforms earned a consensus ‘Strong Buy’ rating, with 84% of respondents recommending a purchase and only one ‘Sell’ call. Analysts’ average 12-month equity target implies roughly 25% upside from current levels, with the most bullish forecast calling for more than 70% gains. The full range of targets spans from a low of 655 to a high north of 1,100, reflecting differing views on ramp-up pace of AI-driven ad improvements and capital investments.

Meta announced that, within weeks, anyone classified as a minor or flagged by its age-prediction system will lose access to its suite of AI chatbot characters until a tailored, age-appropriate experience is ready. The move follows concerns about youth engagement and comes just days before the company heads to trial over alleged harms to underage users. When service resumes, the new environment will include parental controls and limits on conversational topics deemed unsuitable for younger audiences.

In the most recent quarter, Meta reported 26% year-over-year revenue growth, driven by a 14% rise in ad impressions and a 10% increase in average price per ad across its social platforms. Operating income climbed more slowly, up 18%, as total expenses jumped 32% on heavy investment in AI compute infrastructure. Free cash flow fell by one-third versus the prior year. Management now expects capital expenditures to grow “notably” in the coming fiscal year, reflecting the build-out of new data-center capacity for AI workloads.

Meta currently trades at roughly 20 times forward earnings, a discount relative to other large-cap technology peers. That valuation gap persists despite the firm’s forecasted double-digit revenue growth and sustained operating margins above 40%. Investors remain focused on whether expanded AI spending—projected to elevate both operating and capital costs—will translate into higher ad yields and user engagement or erode near-term free cash flow beyond Street expectations.