Amazon jumps 5% after AWS and OpenAI announce $38B partnership
Investing.com - Meta Platforms Inc. (NASDAQ:META) saw its price target lowered by Cantor Fitzgerald from $920.00 to $830.00 on Thursday, while the firm maintained its Overweight rating on the stock. With a current market capitalization of $1.65 trillion and trading at a P/E ratio of 24.06, InvestingPro data shows Meta is currently trading near its Fair Value estimate, despite the recent price target reduction.
The adjustment follows Meta’s third-quarter results, which exceeded street forecasts with 3% higher revenue and 5% better operating income than expected. Despite this outperformance, shares fell 7% in after-market trading while the Nasdaq remained flat. According to InvestingPro data, Meta has maintained impressive 81.97% gross profit margins and achieved 19.37% revenue growth over the last twelve months, reaching $178.8 billion.
Meta’s fourth-quarter revenue guidance projects growth of up to 22% year-over-year at the high end, reflecting continued strength in its core advertising business. The company has revised its 2025 operating expense and capital expenditure outlooks higher, while also indicating significant growth in both categories for 2026.
Cantor Fitzgerald noted that Meta continues to see benefits in user engagement and advertising performance from its artificial intelligence deployments across various business areas. The company maintains a substantial roadmap for additional AI implementations with increased computing capacity.
The firm reduced its fiscal year 2026 earnings per share estimate by 2%, but emphasized that Meta remains "well positioned to generate meaningful returns from its AI investments over the next several years," despite market concerns about fourth-quarter guidance slightly missing investor expectations and commentary on 2026 spending growth.
In other recent news, Meta Platforms Inc. has introduced passkey-encrypted chat backups for WhatsApp, enhancing user security by allowing encryption through biometric data or device screen lock codes. This development comes alongside the company’s third-quarter earnings report, where Meta exceeded revenue expectations but reported diluted earnings per share of $1.05, falling short of the anticipated $6.70. Analysts have reacted to these financial results with mixed adjustments to Meta’s stock price targets.
DA Davidson maintained its price target at $825 and reiterated a Buy rating, despite the earnings miss. Truist Securities also maintained a Buy rating but lowered its price target from $900 to $875, citing strong advertising gains driven by artificial intelligence. Similarly, TD Cowen reduced its target to $810 from $875, highlighting revenue and operating income that surpassed estimates. RBC Capital lowered its target to $810 from $840, noting a softer fourth-quarter guidance and increased future operating expenses. These recent developments reflect varying analyst perspectives on Meta’s financial performance and strategic initiatives.
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