Meta Platforms stock rating reiterated at Overweight by Cantor Fitzgerald

Investing.com - Cantor Fitzgerald has maintained its Overweight rating on Meta Platforms Inc. (NASDAQ:META) with a price target of $920.00. The stock, currently trading at $717.55 with a market cap of $1.8 trillion, maintains a strong buy consensus among analysts with price targets ranging from $658 to $1,086. According to InvestingPro, Meta demonstrates impressive gross profit margins and trades at an attractive P/E ratio of 26.

The firm drew parallels between current investor sentiment toward Meta and concerns that surrounded Alphabet in 2024, when fears about disruption risks to search were prevalent.

Cantor Fitzgerald noted that Alphabet shares underperformed both Meta and Amazon by 19 percentage points in 2024 amid these concerns.

The firm highlighted that Alphabet has since experienced a sharp sentiment improvement following the launch of Gemini 2.5 and success of the Gemini app and AI overviews.

Cantor Fitzgerald believes Meta is positioned for a similar sentiment reversal in 2026, suggesting current market concerns may eventually give way to more positive investor outlook.

In other recent news, Meta Platforms has announced plans to construct a $1.5 billion AI data center in El Paso, Texas, to bolster its artificial intelligence projects. The facility will feature a gigawatt of capacity dedicated to powering high-end computing chips for AI endeavors. Additionally, Meta has expanded its strategic partnership with Arm Holdings to enhance AI efficiency across various computing layers, combining Arm’s technology with Meta’s AI innovations.

Meta is also making changes to Instagram by guiding teenage accounts with PG-13 ratings by default, using age prediction technology to protect younger users. In another development, Meta has reintroduced job listings on Facebook, allowing U.S. users to find local employment opportunities more easily through the platform.

Furthermore, Piper Sandler has maintained its Overweight rating and $880 price target for Meta Platforms, citing strong checks and focusing on the company’s fourth-quarter revenue guidance. Piper Sandler expects Meta’s revenue guidance to reach approximately $59 billion at the high end, indicating a year-over-year growth of about 22%. These developments reflect Meta’s ongoing efforts to expand its AI capabilities and enhance its platform offerings.

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