The Market Shaved 10% Off Meta Over a Month: One Analyst Targets 87% Returns Over The Next Year

Meta Platforms presently trades astatine $599.12, portion Wall Street's statement terms people sits astatine $756.95, implying astir 26.3% upside.

The institution down Facebook, Instagram, WhatsApp, and Threads spent overmuch of the past twelvemonth arsenic 1 of the Magnificent Seven's steadier performers. A bruising Q2 study and rising anxiousness implicit AI capex person sliced Meta Platforms (NASDAQ:META) into the little extremity of its 12-month range. The spread betwixt terms and statement deserves unpacking, due to the fact that the Street's highest expert thinks it should beryllium acold wider.

The Q2 Miss That Sliced 10% From the Stock

Meta fell 10.47% implicit the past period aft a Q2 people that snapped a six-quarter EPS bushed streak. Revenue of $60.80 cardinal bushed expectations by 0.85% and grew 27.96% twelvemonth implicit year, but EPS of $6.18 missed the $7.22 estimation by 14.42%. The miss stemmed from $2.40 cardinal successful youth-related ineligible charges and $1.18 cardinal successful severance from a May headcount simplification of astir 8,000 employees. Operating borderline compressed to 31% from 43%, and escaped currency travel collapsed 91.31% to $784 cardinal arsenic quarterly capex deed $30.12 billion.

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Shares dropped from $597.37 to $527.50 successful the hr aft the merchandise earlier clawing backmost portion of the loss. It was company-specific weakness. Alphabet rallied connected beardown Cloud numbers the aforesaid week, and the S&P 500 gained done the stretch. Meta raised the debased extremity of FY2026 full expenses to $165 cardinal to $169 cardinal and lifted its remaining-year taxation complaint presumption to 15% to 17%.

Why Analysts Refuse to Downgrade

Sell-side condemnation has hardly budged. Of the 62 analysts covering Meta, 55 complaint it Buy, 7 complaint it Hold, and nary complaint it Sell. The $756.95 mean people inactive implies coagulated upside contempt the miss.