Meta (META) Stock Forecast & Price Target

Meta Platforms demonstrates a strong financial outlook, expecting revenue to reach $147 billion by 2026, representing a 28% increase. The company's quarterly revenue for 3QE has been raised by 8% to $49.8 billion, driven by solid performance across its platforms and renewed advertising spending from Chinese companies. With Family Daily Active People growing by 6% year-over-year and significant increases in ad impressions and prices, the firm showcases sustained user engagement and advertising efficacy, contributing to its positive long-term prospects.

The negative outlook on Meta Platforms's stock stems from several fundamental challenges affecting its future growth and profitability. Growing competition from emerging platforms like TikTok poses a threat to Meta's market share, particularly as user engagement among younger demographics declines, which could lead to stagnation or a reversal in the active user base. Additionally, while the company has seen recent year-over-year growth in EBITDA, concerns regarding escalating content and infrastructure costs, as well as the long-term effectiveness of investments in Reality Labs, raise questions about the overall return on invested capital (ROIC) and future profitability.