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Investing.com - Stifel raised its price target on Meta Platforms Inc. (NASDAQ:META) to $900.00 from $845.00 on Thursday, while maintaining a Buy rating on the stock. Meta, currently trading at $776.78, enjoys strong analyst support with a consensus rating of 1.41 (Strong Buy). According to InvestingPro, the company maintains impressive gross profit margins of 81.77%.
Meta reported second-quarter results with revenue exceeding the top end of the company’s guidance range, with growth accelerating 235 basis points at constant currency. The company’s revenue reached $170.36 billion in the last twelve months, showing robust growth of 19.37%. The company also provided third-quarter revenue guidance that came in ahead of consensus estimates.
Meta adjusted its fiscal year 2025 outlook, raising the low end of both its total expense and capital expenditure guidance ranges. The company indicated that fiscal year 2026 total expense growth will exceed the 22% growth expected this year, while 2026 capital expenditure growth in dollar terms will likely match 2025’s approximately $30 billion year-over-year increase. Notably, InvestingPro data shows Meta holds more cash than debt on its balance sheet, with a healthy current ratio of 2.66.
Stifel noted that Meta’s artificial intelligence investments are showing results, with Meta AI reaching over 1 billion monthly active users. The firm also highlighted progress in WhatsApp monetization, which now has more than 1.5 billion daily active users in its updates tab, though monetization efforts will remain measured through 2026.
The price target increase follows Stifel’s adjusted estimates based on Meta’s latest financial performance and outlook.
In other recent news, Meta Platforms has reported second-quarter results that exceeded expectations, with revenue and earnings per share surpassing consensus estimates by 6% and 21%, respectively. The company achieved significant ad revenue growth, accelerating by 2 percentage points to 22% year-over-year, excluding foreign exchange impacts. Following these results, several analyst firms have updated their outlook on Meta. Cantor Fitzgerald raised its price target to $920, maintaining an Overweight rating, while Rosenblatt increased its price target to $1,086, citing a pivotal growth outlook. HSBC upgraded Meta’s stock rating from Hold to Buy, with a price target of $900, based on higher operational forecasts. Meanwhile, Guggenheim adjusted its price target to $875, maintaining a Buy rating, and Scotiabank (TSX:BNS) raised its target to $685, keeping a Sector Perform rating. These developments reflect a positive reception from analysts following Meta’s strong earnings performance.
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