Why Nearly 20 Analysts Raised Meta Price Targets Post-Earnings
Meta Platforms (NASDAQ: META) rewarded investors with another strong post-earnings gain on May 1. Shares rose over 4% after the release, and the company’s results extended its streak of beating expectations. Meta has now beaten Wall Street's sales estimates for 11 straight quarters.
It also exceeded expectations for adjusted earnings per share (EPS) for the ninth quarter in a row. Overall, shares have gained by an average of more than 5% post-earnings over the last 10 quarters.
However, a higher share price was far from the only good news investors received. According to forecasts tracked by MarketBeat, nearly 20 Wall Street analysts raised their price targets on the tech giant. To be fair, several individuals lowered their targets. Still, three times as many boosted them.
So, what is driving the majority of analysts to become more bullish on Meta, and exactly how much upside do they see?
JPMorgan Sees Good Reason for Meta’s Increased CapEx
One major announcement coming from Meta was the company raising its capital expenditure (CapEx) guidance for 2025. Meta has been using CapEx spending to invest significantly in AI infrastructure that supports the growth of its business. Critics have targeted big tech companies for their tens of billions in CapEx spending on AI. However, Meta has been demonstrating extensive gains due to the implementation of AI in its advertising platform. Wall Street analysts are noticing this and showing support for Meta’s higher CapEx spending plans. The success of Meta’s AI initiatives is a key reason many are raising their price targets.
Even though more CapEx spending means more cash leaving Meta’s pockets, analysts at JPMorgan Chase & Co. (NYSE: JPM) expressed confidence in this move. They highlighted the company’s “solid results and execution along its AI roadmap” and its “ambitious long-term goals” as justifications for the higher spending.
Analysts at Stifel noted Meta’s ongoing investment in artificial intelligence as a key driver of future growth. Piper Sandler believes that Meta’s AI initiatives are “a key factor in the company’s forward momentum." They stated that the higher CapEx spending aims to fast-track the development and rollout of the technology needed for these initiatives. Truist Securities added that “Meta continues to justify its right to invest."
The fact that people are seeing more ads on Meta and that marketers are spending more on each ad provides evidence of Meta’s strong AI execution. From Q1 2023 to Q1 2025, the number of ad impressions on Meta’s apps is up by around 26%, indicating that marketers are buying a higher volume of ads. Comparing the same two periods, the price paid per ad is up around 17%. In economics, higher prices typically mean that demand should fall. The fact that Meta is raising its ad prices while also seeing higher ad demand demonstrates the huge value that marketers are getting out of its platform. Meta’s AI investments have led to significantly more time spent on its apps. This is a key reason why marketers are willing to direct more ads to them while also paying a higher price.
Citi Sees Added AI Clarity as a Positive
Analysts at Citigroup (NYSE: C) brought up another key point. Meta laid out the five major growth opportunities it is pursuing through its AI strategy. This was the first time that Meta explained this in a structured format. Those opportunities are: “improved advertising, more engaging experiences, business messaging, Meta AI, and AI devices."
Analysts at Citi noted that this clear plan “strengthened confidence in [Meta’s] continued growth trajectory." Although this may not seem like a big deal, companies often get rewarded for providing clarity around their business.
Doing so allows investors to understand how well a company is actually executing. If a company executes well, this can lead to higher multiples. Because Meta is doing just that, adding clarity is a positive. However, it could also backfire if Meta stops executing well.
Updated Targets Indicate Nearly 20% Upside in Meta
On average, Wall Street analyst price target updates tracked by MarketBeat after the May 1 earnings release indicate significant 12-month return potential in Meta shares. Compared to the stock’s May 8 closing price of just under $598 per share, these updates imply that shares could rise by over 18%.
Overall, the rise in price targets for Meta comes down to one key point: the company is delivering strong results with its AI strategy. This should bolster investor confidence, just as it has done for many on Wall Street.
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