Meta Platforms stock price target maintained at $875 by TD Cowen

Investing.com - TD Cowen has reiterated its Buy rating on Meta Platforms Inc. (NASDAQ:META) with a price target of $875.00 ahead of the company’s third-quarter 2025 earnings report, due October 29. According to InvestingPro data, analyst targets range from $658 to $1,086, with 32 analysts recently revising earnings expectations upward.

The research firm expects Meta to continue demonstrating strong advertising growth through the third quarter of 2025, maintaining its positive outlook on the social media giant’s core business performance. This optimism is supported by Meta’s impressive 19.37% revenue growth and industry-leading gross profit margins of 82%.

TD Cowen analyst John Blackledge specifically noted in his preview that "Strong Ad Growth to Continue" for the company, suggesting confidence in Meta’s revenue generation capabilities from its advertising platforms.

The firm also highlighted that costs are expected to increase in the second half of 2025, indicating potential pressure on profit margins despite the strong top-line performance.

The maintained $875.00 price target reflects TD Cowen’s unchanged valuation assessment of Meta Platforms as the company navigates through a period of continued advertising strength alongside rising operational expenses.

In other recent news, Meta Platforms Inc. has made several strategic moves to enhance its technological and social media offerings. The company is acquiring chip startup Rivos Inc. to bolster its internal semiconductor development, aiming to gain more control over its artificial intelligence infrastructure. This acquisition aligns with Meta’s ongoing efforts to strengthen its AI capabilities, as it continues to invest heavily in GPUs from external partners like Nvidia Corp. Additionally, Meta is set to use interactions with its AI chatbot to tailor content and advertisements on Facebook and Instagram, starting December 16. This move will allow Meta to provide more personalized advertising experiences based on user interactions with the AI tool.

In terms of social media enhancements, Meta has rolled out significant upgrades to Facebook Reels, improving content recommendations and adding new social features to enhance user experience. The improved recommendations engine now displays 50% more reels from creators published on the same day. Furthermore, Meta has introduced communities on Threads, allowing users to connect over shared interests such as basketball, TV shows, and K-pop. In the realm of stock analysis, Mizuho has initiated coverage of Meta Platforms with an Outperform rating, highlighting Meta’s strong leverage in artificial intelligence and machine learning technologies as pivotal factors for its positive outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.