Meta Stock Reaffirmed Buy as Jefferies Highlights Strong Upside Potential

Meta Platforms stock (NASDAQ:META) is on the move this morning, up 2.7% in pre-market trading to $629.50, following a bullish reaffirmation from Jefferies that laid out a compelling case for buying into the recent pullback.

The firm maintained its Buy rating and $910 price target, representing roughly 45% upside from current levels, as it highlighted five key catalysts that position the social media giant for substantial growth through 2026.

Jefferies analyst Brent Thill pointed to what the firm views as an attractive risk-reward profile at Meta’s current valuation, particularly when measured against rival Alphabet. The discount to its tech peer, combined with what Jefferies characterizes as moderate downside risk to earnings estimates and stronger upside potential, forms the foundation of the bullish thesis. The firm’s confidence extends beyond relative valuation, however, encompassing Meta’s strategic transformation into an AI-first company.

Central to Jefferies’ outlook is the expected contribution from Meta’s recent wave of artificial intelligence talent acquisitions. These AI-focused hires are anticipated to deliver meaningful results in 2026, bolstering the company’s technical capabilities across its platform ecosystem. The firm emphasized that Meta’s core business flywheel, now increasingly powered by AI investments, continues to gain momentum. This AI integration spans Facebook, Instagram, and WhatsApp, enhancing user engagement metrics and advertising effectiveness.

Emerging Revenue Engines

Perhaps most significantly, Jefferies highlighted the accelerating activation of major incremental revenue engines that have yet to reach their full monetization potential. WhatsApp, with its massive global user base, remains largely undermonetized compared to Meta’s other properties. Threads, the company’s Twitter competitor, is gaining traction as an emerging platform. Meanwhile, Llama, Meta’s open-source large language model, and broader AI initiatives represent entirely new revenue streams that could materially impact the company’s financial profile.

The positive sentiment from Jefferies aligns with a broader consensus among Wall Street analysts. UBS previously raised its price target to $915, citing strength in Meta’s advertising business and user engagement. Stifel set a $900 target, highlighting AI investments and WhatsApp monetization progress. Cantor Fitzgerald maintains a $920 price target with an Overweight rating, acknowledging the company’s strategic direction despite anticipated increases in capital expenditures.

Not all voices have been uniformly bullish, however. KeyBanc lowered its price target to $875 in late October, maintaining an Overweight rating but expressing concerns about future capital and operating expenditures. Piper Sandler similarly reduced its target to $840, citing apprehension about expense commentary for 2026. These cautious notes underscore the investment community’s watchfulness regarding Meta’s substantial AI-related spending commitments.

With the company’s transformation toward an AI-first business model accelerating and new revenue streams beginning to activate, markets appear receptive to the narrative that near-term spending concerns may be outweighed by longer-term growth opportunities.