Wolfe Research cuts Meta stock price target to $640 from $730

Tuesday, Wolfe Research adjusted its price target on Meta Platforms Inc. (NASDAQ: NASDAQ:META) to $640, down from the previous $730, while maintaining an Outperform rating on the stock. According to InvestingPro data, Meta's stock is currently trading near Fair Value levels, with analysts maintaining a strong buy consensus and price targets ranging from $505 to $935. The firm anticipates that Meta's first-quarter revenue will hit the upper end of the company's guidance and align with investor expectations due to a conservative prior guide and a slight improvement in foreign exchange rates.

For the second quarter, Wolfe Research predicts that Meta's management will set revenue guidance at a low single-digit percentage below the consensus estimate, ranging between $41.5 billion and $44 billion. Despite this, the firm expects that the investment community is already preparing for potential revenue reductions. Meta's strong financial position is evident in its impressive 81.7% gross profit margin and robust balance sheet, with InvestingPro analysis showing the company holds more cash than debt. The company's capital expenditure guidance is likely to be reaffirmed, and its annual operating expense guidance may be reduced.

In light of these forecasts, Wolfe Research has revised its full-year 2025 estimates for Meta downward by 1.5% to 2%. The adjustment in the price target to $640 reflects this updated outlook, a decrease from the previously anticipated $730.

The research firm's commentary suggests that while there is a cautious stance on the near-term revenue outlook for Meta, the Outperform rating indicates a belief in the company's longer-term growth potential. The new price target of $640 takes into account both the immediate challenges and the anticipated future performance of the social media giant.

Investors and market watchers will likely monitor Meta's upcoming quarterly financial results, scheduled for April 30, and management guidance to gauge the accuracy of these projections and the company's trajectory in the face of industry and economic challenges. For deeper insights into Meta's financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and a detailed Pro Research Report, part of the platform's coverage of over 1,400 top US stocks.

In other recent news, Meta Platforms has been the subject of several developments that may interest investors. Guggenheim Securities adjusted its 12-month price target for Meta Platforms from $750 to $675 while maintaining a Buy rating, citing expectations for the company's first-quarter earnings and its strong user engagement on Facebook and Instagram. The firm anticipates Meta's advertising revenue to be at the upper end of the company's guidance, between $39.8 billion and $41.8 billion. Meanwhile, Jefferies reaffirmed its Buy rating on Meta with a $600 price target, highlighting the company's leadership in large language models with the release of Llama 4.

Additionally, the European Union is set to announce its decision on whether Meta has violated key technology regulations under the Digital Markets Act, which could impact the company's operations in the region. In collaboration with Intel (NASDAQ:INTC), Meta has launched the first models of the Llama 4 herd, designed for personalized multimodal experiences. Intel's support includes the use of its Gaudi 3 AI accelerator and Xeon processors, which are optimized for AI workloads. These updates reflect Meta's ongoing commitment to innovation and its strategic partnerships to enhance its technological capabilities.

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