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Meta Stock: Buy Signal Amidst Capital Expenditure Concerns
7 Jun
Summary
- Analysts recommend Meta stock with a 45% upside potential.
- Meta faces market concern over Reality Labs' $4B quarterly loss.
- Increased capital expenditures are a primary risk for Meta Platforms.
Meta Platforms (META) closed at $597.63 on June 2, 2026, experiencing a year-to-date decline. Despite this, a 24/7 Wall St. price target of $868.05 suggests a 45.25% upside over the next 12 months, with a high buy recommendation. The company reported strong Q1 2026 financial results, with revenue up 33.1% year-over-year to $56.31 billion.
Market apprehension stems from Meta's increased capital expenditure guidance, now between $125 to $145 billion for 2026, a rise from previous forecasts. This significant investment, coupled with Reality Labs' $4.03 billion loss in Q1 alone, creates execution risks. Nevertheless, bulls cite daily active users reaching 3.56 billion and progress in AI initiatives.
Analyst sentiment remains largely positive, with 56 out of 63 covering analysts rating META as a Buy. Price targets range from $810 to a high of $1,015, with a bull-case scenario projecting $900 to $1,015. Potential acceleration in 2027 EPS growth, driven by AI-enhanced ad targeting and stabilizing Reality Labs losses, supports these optimistic outlooks.
