Meta Platforms stock price target raised to $750 by Morgan Stanley

Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Meta Platforms Inc. (NASDAQ:META) to $750.00 from $650.00 while maintaining an Overweight rating on the stock. The target sits well above Meta’s current trading price of $704.28, with the stock trading near its 52-week high of $747.90 and showing impressive year-to-date returns of 20.48%.

The investment firm cited Meta’s core growth algorithm of continuously improving GPU-enabled machine learning as a key driver for higher engagement and monetization, which is likely to continue accelerating top-line growth. According to InvestingPro analysis, Meta maintains a "GREAT" financial health score, supporting its ambitious AI investments while maintaining strong gross profit margins of 81.77%.

Morgan Stanley identified two factors critical for Meta’s second-half 2025 performance: results that give the market confidence in a path toward at least $30 of 2026 earnings per share, and the launch of next-generation Llama models with potential reasoning capabilities. With Meta’s next earnings report scheduled for July 30, 2025, investors will be closely watching these developments.

The firm emphasized the importance of further generative AI productization to help investors understand the return on investment capital from Meta’s recent heavy hiring and capital expenditure investments as it adjusts part of its AI strategy.

Morgan Stanley specifically noted that long-term growth options like search, chatbots, and devices are particularly important for driving durable growth and supporting Meta’s stock multiple, which currently trades at approximately 23 times 2026 earnings per share and 38 times 2026 free cash flow.

In other recent news, Meta Platforms has made headlines by declining to sign the European Commission’s Code of Practice for general-purpose AI models. The company cited concerns about regulatory overreach, aligning its position with major European businesses. In a separate development, Citizens JMP has maintained its Market Outperform rating for Meta, highlighting the benefits of AI in enhancing Meta’s advertising business. The firm has increased its growth estimates, emphasizing the role of AI in sustaining revenue growth. Meanwhile, KeyBanc has raised its price target for Meta to $800, expecting second-quarter revenue of $45.3 billion and projecting third-quarter guidance between $45 billion and $47.5 billion. KeyBanc’s adjustments reflect Meta’s revenue momentum, despite concerns over potential AI investment costs. Additionally, Meta has appointed Connor Hayes as the head of Threads, signifying a strategic move to develop the platform further. This appointment marks a commitment to establishing Threads as a standalone product within Meta’s app family.

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