Investors are valuing Meta more like an AI infrastructure enabler than a traditional social media company, with the stock trading around 28 times forward earnings—near its highest multiple in three years. Analyst price targets vary widely from $658 to $1,086, with a consensus median of $859, implying upside of roughly 10% from current levels. High-end forecasts extend to nearly $1,200 by 2027, reflecting belief in Meta’s ability to leverage AI to sustain double-digit earnings growth. A California jury recently found that Meta violated state privacy laws by collecting sensitive reproductive health data from the Flo period-tracking app and sharing it with advertisers. While Meta plans to appeal the verdict, the case highlights mounting regulatory scrutiny and the potential for significant legal costs or changes to data-handling practices. Investors should monitor developments, as large fines or mandated compliance shifts could affect margins and user-data monetization strategies. Meta Platforms reported second-quarter revenue of $47.5 billion, up 21% year-over-year, driven by advertising growth across Facebook, Instagram and WhatsApp. Ad revenue alone rose 22%, totaling $46.6 billion, while earnings per share jumped 38% to $7.14, comfortably above consensus estimates. Management guided third-quarter revenue between $47.5 billion and $50 billion—implying roughly 20% growth at the midpoint—and reiterated plans for sustained data center investment to support AI workloads. CEO Mark Zuckerberg emphasized that AI integration across Facebook, Instagram, Messenger and the rising Threads platform—now at 350 million monthly active users—will drive the next phase of engagement and monetization. To fund this push, Meta raised its 2025 capital expenditure estimate to a range of $66 billion to $72 billion, with the incremental spend earmarked for data centers, custom AI hardware and software infrastructure. Early tests of AI-powered ad tools and conversational features have already attracted 30% more advertisers to its platform.
Investors are valuing Meta more like an AI infrastructure enabler than a traditional social media company, with the stock trading around 28 times forward earnings—near its highest multiple in three years. Analyst price targets vary widely from $658 to $1,086, with a consensus median of $859, implying upside of roughly 10% from current levels. High-end forecasts extend to nearly $1,200 by 2027, reflecting belief in Meta’s ability to leverage AI to sustain double-digit earnings growth. A California jury recently found that Meta violated state privacy laws by collecting sensitive reproductive health data from the Flo period-tracking app and sharing it with advertisers. While Meta plans to appeal the verdict, the case highlights mounting regulatory scrutiny and the potential for significant legal costs or changes to data-handling practices. Investors should monitor developments, as large fines or mandated compliance shifts could affect margins and user-data monetization strategies. Meta Platforms reported second-quarter revenue of $47.5 billion, up 21% year-over-year, driven by advertising growth across Facebook, Instagram and WhatsApp. Ad revenue alone rose 22%, totaling $46.6 billion, while earnings per share jumped 38% to $7.14, comfortably above consensus estimates. Management guided third-quarter revenue between $47.5 billion and $50 billion—implying roughly 20% growth at the midpoint—and reiterated plans for sustained data center investment to support AI workloads. CEO Mark Zuckerberg emphasized that AI integration across Facebook, Instagram, Messenger and the rising Threads platform—now at 350 million monthly active users—will drive the next phase of engagement and monetization. To fund this push, Meta raised its 2025 capital expenditure estimate to a range of $66 billion to $72 billion, with the incremental spend earmarked for data centers, custom AI hardware and software infrastructure. Early tests of AI-powered ad tools and conversational features have already attracted 30% more advertisers to its platform.