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Investing.com - Benchmark raised its price target on Meta Platforms Inc. (NASDAQ:META) to $890.00 from $800.00 on Thursday, while maintaining a Buy rating on the stock. The tech giant, now valued at $1.94 trillion, has demonstrated impressive financial strength with a "GREAT" health score according to InvestingPro analysis.
The price target increase follows Meta’s second-quarter earnings report, which Benchmark noted delivered strong top and bottom-line performance that helped offset management’s aggressive 2026 operating expense and capital expenditure outlook. With an industry-leading gross profit margin of 81.77% and robust revenue growth of 19.37%, Meta continues to demonstrate operational excellence.
Benchmark has significantly revised its 2025 revenue growth forecast for Meta, nearly doubling it to 20%, which translates to an incremental 100 basis points of U.S. digital ad market share for the company.
The research firm highlighted Meta’s plans for an additional $30 billion in capital expenditures next year, which will support the company’s transition to generative AI and its mission to lead artificial superintelligence development.
Benchmark’s updated price target is based on a discounted cash flow analysis, with the firm noting that Meta will need revenue diversification beyond global advertising budgets to fully achieve its AI goals.
In other recent news, Meta Platforms has reported impressive second-quarter results, with revenue growth accelerating to 22% year-over-year, according to JPMorgan. This strong performance has led JPMorgan to raise its price target for Meta Platforms to $875, maintaining an Overweight rating. Stifel also increased its price target to $900, noting that Meta’s revenue exceeded the top end of its guidance range and provided optimistic third-quarter revenue guidance. HSBC upgraded Meta Platforms from Hold to Buy, citing higher operational forecasts and setting a price target of $900. Additionally, Rosenblatt raised its price target for Meta Platforms to $1,086, describing the company’s second-quarter results as pivotal. Meta Platforms has also announced an increase in its capital expenditure forecast for 2025, signaling robust plans for future spending. This move, along with Microsoft (NASDAQ:MSFT)’s increased spending plans, has benefited companies like CoreWeave, which saw a rise in its stock. These developments highlight Meta Platforms’ continued growth and strategic financial planning.
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