Meta Stock Price $774: NASDAQ:META Targets $900 With AI and Buybacks

NASDAQ:META – $2 Trillion Giant Fueled by AI and Advertising Power

Meta Platforms (NASDAQ:META) trades at $774.70, down 0.55%, with a market value of $1.96 trillion. Despite short-term volatility, the company’s fundamentals, AI-driven ad strength, and expanding ecosystem highlight why analysts assign an average target of $864.59 and a high of $1,086.

NASDAQ:META Revenue Growth and Margin Strength

The second quarter of 2025 showed $47.5 billion in revenue, rising 22% year over year, while EPS surged 38% to $7.14. Operating margin expanded to 43% versus 38% last year. On a trailing twelve-month basis, revenue reached $178.8 billion, net income was $71.5 billion, and EPS hit $27.58. Management projects Q3 revenue between $47.5 billion and $50.5 billion, equating to 17–24% growth.

NASDAQ:META Heavy CapEx and AI Acceleration

Meta invested $16.5 billion in CapEx in Q2 2025, equal to 35% of revenue, with full-year spend guided to $66–72 billion. This capital goes to GPU servers and AI infrastructure, powering ad-targeting efficiency. Results already show a 9% rise in price per ad and 11% growth in ad impressions, while AI-driven tools improved advertisers’ return on spend by 22%.

NASDAQ:META Workforce Efficiency and Productivity Gains

Since 2023’s “year of efficiency,” headcount growth has been contained at 7% against 22% revenue growth, lifting revenue per employee by 13.4%. Over two years, this metric jumped 58%, aided by AI coding tools estimated to handle 30% of engineering output, reducing costs and boosting operating leverage.

NASDAQ:META Devices and Reality Labs Performance

Sales of Ray-Ban Meta smartglasses tripled over the past year, with production expected to hit 10 million units annually by 2026. New AR glasses codenamed “Hypernova” and wristband controls are set to debut at Meta Connect 2025. Meanwhile, Reality Labs continues to post steep losses, with over $70 billion lost since 2020, including $4.8 billion in Q2, but management views devices as key to future ecosystem control.

NASDAQ:META Regulatory Relief and Legal Risks

The EU General Court ruling reduced the burden of Digital Services Act fees, easing European compliance costs. While U.S. antitrust suits remain unresolved, Meta has proven resilience through prior regulatory shocks. The FTC’s probe into AI chatbot safety for children adds scrutiny but does not significantly impact near-term profitability.

NASDAQ:META Buybacks, Dividend, and Cash Reserves

Meta repurchased $22.9 billion of shares in H1 2025, including $10.2 billion in Q2, funded by $20.1 billion free cash flow in the first half. Despite high CapEx, the company holds $47.07 billion in cash against $49.56 billion debt. A quarterly dividend of $0.525 per share provides a modest 0.27% yield, with a low 7.44% payout ratio, leaving ample room for expansion.

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NASDAQ:META Valuation Compared to Tech Peers

At a forward P/E of 26.4, Meta trades at a 20% discount to Apple and Microsoft, both near 32x, despite superior EPS growth. Analysts have raised 41 EPS forecasts in the past 90 days, projecting $28.10 EPS in 2025 and $29.97 in 2026. The stock’s PEG ratio of 2.13 suggests balanced valuation relative to growth, with room for upward revisions.

NASDAQ:META Technical Setup and Market Action

The stock is consolidating within a bullish channel, holding above its 20-day EMA at $751. Resistance lies at $780–$790, with breakout potential toward $820. Support is clustered at $736–$720, with downside risk toward the 100-day EMA at $705. Over the past year, META gained 44.8%, compared to 17% for the S&P 500, while five-year returns stand at 205%, doubling benchmark performance.

NASDAQ:META Final Verdict – A Strong Buy Rating

Meta combines resilient ad growth, AI-driven monetization, shareholder returns, and early hardware momentum. Even with $70+ billion Reality Labs losses and CapEx intensity, its efficiency gains and valuation discount make it a compelling opportunity. At current levels, NASDAQ:META is a Buy, with upside potential toward $900–$1,000 in the next 12–18 months.

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