Freedom Capital Upgrades Meta Price Target to $800 on AI Growth

Meta Platforms Upgraded to Buy with $800 Target on Strong Q3 2025 Revenue and AI Growth Prospects

  • Analyst Saken Ismailov upgraded Meta Platforms stock from Hold to Buy with a price target of $800.
  • Meta reported Q3 2025 revenue of $51.2 billion, a 26% increase year-over-year, driven by $50.1 billion in ad revenue.
  • The company raised its 2025 capital expenditure and expense guidance due to AI infrastructure investments and expects faster growth in 2026.
  • Meta CEO Mark Zuckerberg highlighted progress in AI projects and the ability to repurpose infrastructure if AI growth does not meet expectations.
  • Out of 73 analysts surveyed, 88% rate Meta stock as Buy, with a median growth forecast of 30% to $850 within 12 months.

Meta Platforms stock received a price upgrade from analyst Saken Ismailov at Freedom Capital Markets, who raised the rating from Hold to Buy and set a price target of $800. The upgrade follows the company’s strong Q3 2025 performance, which exceeded expectations.

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In the third quarter of 2025, Meta reported revenue of $51.2 billion, a 26% increase from the previous year, with advertising revenue totaling $50.1 billion. The company has increased its capital expenditure and expense guidance for 2025, attributing the rise to investments in AI infrastructure. Management also anticipates significantly faster growth in 2026, driven by these AI-related developments.

Meta has spent billions recently on hiring and constructing data centers to support AI demand. While this has caused earnings per share (EPS) to fall short in Q3 due to increased spending, some investors remain concerned about the associated risks. However, Ismailov points to AI-driven recommendation tools that are boosting user engagement and early monetization efforts from WhatsApp as additional growth drivers. He believes current AI spending is not fully reflected in the stock’s valuation, presenting an opportunity for long-term investors.

During the earnings call, Meta CEO Mark Zuckerberg stated, “Meta Superintelligence Labs is off to a great start, and we continue to lead the industry in AI glasses,” adding, “If we deliver even a fraction of the opportunity ahead, then the next few years will be the most exciting period in our history.” He also noted a contingency plan that would allow the company to repurpose AI infrastructure for other profitable uses if AI growth does not meet expectations.

At present, META trades within its 52-week range and below its 200-day simple moving average. Analysts surveyed by CNN have a median target of $850, projecting a 30% gain over the next year. Among 73 analysts, 88% recommend buying the stock.

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