Loop Capital raises Meta stock price target to $980 on AI growth

Published 05/08/2025, 18:02
© Reuters.

Investing.com - Loop Capital has raised its price target on Meta Platforms Inc. (NASDAQ:META) to $980.00 from $888.00 while maintaining a Buy rating on the stock. Meta, currently trading at $766.91 and commanding a market cap of $1.93 trillion, has seen its stock surge 32.82% year-to-date, trading near its 52-week high of $784.75.

The research firm cited Meta’s "meaningful revenue growth acceleration and strong outlook" as the biggest positive surprise among mega-cap earnings reports so far, with Nvidia (NASDAQ:NVDA)’s results still pending. According to InvestingPro, Meta has demonstrated impressive performance with revenue reaching $178.8B and maintaining strong gross margins of 81.97%.

Loop Capital views Meta as the largest non-hardware beneficiary of artificial intelligence, noting that acceleration in both user engagement and monetization is being driven by AI investment against what appears to be "a very long runway."

The firm highlighted several long-term opportunities for Meta, including business AIs, personal AI assistants, wearables, and open-source models, which it believes are each "very meaningful" for the company’s future.

Loop Capital maintained its target valuation at 30 times 2026 GAAP earnings plus cash, suggesting that Meta’s "user reach and frequency, ability to invest and management’s execution track record" will drive the stock’s earnings multiple toward other mega-cap tech leaders.

In other recent news, Meta Platforms Inc. reported an exceptional second-quarter performance in 2025, surpassing optimistic expectations with notable revenue and profit growth. Analysts from Freedom Broker responded by downgrading Meta’s stock rating from Buy to Hold, despite raising the price target to $800, citing the company’s robust performance driven by a recovery in advertising pricing and increased user engagement. Additionally, Benchmark and JPMorgan both raised their price targets for Meta to $890 and $875, respectively, maintaining positive ratings due to the company’s strong earnings report and accelerated revenue growth.

In the realm of mergers and partnerships, Meta is exploring collaborations with AI startups like Pika and Higgsfield, focusing on video creation and editing technologies. These discussions include potential acquisitions or licensing agreements for advanced AI video technology. Meanwhile, Amazon.com (NASDAQ:AMZN) reported second-quarter 2025 revenue that exceeded consensus estimates by $5.5 billion, or 3%. Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating for Amazon, noting that the company’s third-quarter revenue guidance midpoint is also 2% above consensus expectations.

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