Analysts Split on Meta (META) as Rising AI Costs Clash With Strong Growth Outlook

Meta Platforms Inc. (NASDAQ:META) is one of the AI stocks analysts are betting on. On November 24, BNP Paribas Exane initiated coverage of Meta Platforms Inc. (NASDAQ:META) with an Outperform rating and a $800 price target.

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Cantor Fitzgerald trimmed its price target on Meta Platforms Inc. to $720 from $830 on November 19, though it kept an Overweight rating. The firm pointed to Meta’s plans for higher operating expenses in FY26, driven by heavier depreciation, expanding infrastructure, and continued investment in AI talent and cloud capabilities. Cantor also noted that Meta’s recent cloud commitments, totaling more than $40 billion, could add roughly $4 billion in extra costs, creating uncertainty around potential headwinds in 2026 as new capacity comes online.

Just days earlier, on November 10, Freedom Capital Markets upgraded Meta Platforms Inc. to a Buy from Hold with an $800 price target. The upgrade follows the company’s strong third-quarter results, driven by robust advertising demand, increased active users, and heightened engagement rates on the company’s social networking platforms.

The company has achieved an impressive 21.27% revenue growth over the past 12 months, driven by strong advertising on its platforms. Likewise, Freedom Capital Markets has touted the company’s artificial intelligence-driven tools and early monetization on WhatsApp. While the company’s margins are facing pressure from higher capital expenditures related to data center and AI infrastructure expansion, it continues to deliver enhanced performance on various metrics.

According to the research firm, the current market valuation does not capture the potential of Meta Platform’s artificial intelligence strategy. The remarks come as the technology giant has signed a deal worth $3 billion with Nebius. Under the terms of the agreement, Meta is to access AI infrastructure to address the surging demand for high-performance computing power as it increasingly builds and runs artificial intelligence models.

Meta Platforms, Inc. (NASDAQ:META) is a leader in artificial intelligence (AI) research and development, focusing on building foundational AI models, integrating AI into its core platforms (Facebook, Instagram, WhatsApp, Messenger, and its hardware products), and developing AI for the future of augmented and virtual reality (the metaverse).

While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.