Goldman Sachs raises Meta Platforms price target to $690

On Thursday, Goldman Sachs updated its outlook on Meta Platforms Inc. (NASDAQ: NASDAQ:META), increasing the company’s price target from $685.00 to $690.00, while reaffirming a Buy rating on the stock. The adjustment reflects the firm’s ongoing confidence in Meta’s strategic direction and growth potential. Currently trading at $549 with a market capitalization of $1.39 trillion, InvestingPro analysis indicates the stock is trading near its Fair Value, with an impressive financial health score of 3.2 ("GREAT").

The Goldman Sachs analyst highlighted Meta’s commitment to key areas of growth, emphasizing the company’s focus on integrating artificial intelligence (AI) and spatial computing across its existing suite of applications, new standalone apps, and innovative ventures within its Reality Labs division. These initiatives are expected to play a crucial role in Meta’s future development. The company’s strong financial position is evident in its impressive 81.68% gross profit margin and robust 21.94% revenue growth over the last twelve months.

Meta’s management team is also concentrating on investing in world-class computing infrastructure and open-source software projects. Additionally, there is an anticipation of increased capital expenditures over an extended period, signaling the company’s long-term commitment to advancing its technological capabilities.

The analyst’s comments shed light on the strategic priorities of Meta, indicating that the company is poised to capitalize on the convergence of AI and spatial computing. This strategy is expected to drive growth through both the company’s established family of apps and its explorations in new hardware, software, and platform developments associated with Reality Labs.

Goldman Sachs’ revised price target suggests a marginal yet positive adjustment in the firm’s valuation of Meta Platforms, reinforcing the investment bank’s optimistic view on the tech giant’s trajectory. The Buy rating remains unchanged, underscoring the analyst’s confidence in Meta’s ability to execute its long-term growth strategies effectively.

In other recent news, Meta Platforms Inc. reported strong financial results for the first quarter of 2025, surpassing market expectations. The company achieved an earnings per share of $6.43, exceeding the forecasted $5.24, and generated revenue of $42.31 billion, surpassing the $41.48 billion estimate. Barclays (LON:BARC) analyst Ross Sandler adjusted Meta’s price target from $705 to $640 while maintaining an Overweight rating, highlighting the company’s first-quarter revenue and earnings per share as being ahead of consensus by 2% and 23%, respectively. Sandler noted Meta’s investments in AI and performance-focused strategy as key factors for its continued market share growth. Meta’s guidance for the second quarter also exceeded expectations, with anticipated revenue between $42.5 billion and $45.5 billion. The company continues to focus on advancements in AI and strategic product innovations, which are driving its performance. Meta’s increased capital expenditure guidance reflects its commitment to enhancing its AI infrastructure and product offerings. Despite the positive outlook, Barclays has slightly lowered its estimates for Meta, aligning with broader industry trends.

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