Meta's Ambitious AI Plans to Drive Ad Revenue Growth in 2025

Meta Platforms (META) is investing heavily in AI, with plans for a 1-gigawatt supercluster (Prometheus) and a 5-gigawatt data center (Hyperion). This indicates strong confidence in future revenue growth, driven by AI-powered advertising innovations. Bank of America Securities analyst Justin Post maintained a Buy rating and increased the price forecast to $775, citing Zuckerberg's announcement as a clear indication of Meta's revenue trajectory.

Meta Platforms (META) stock surged Wednesday, pushing closer to its highs from late last month, as multiple Wall Street analysts upgraded their price targets for the Facebook parent company. The upgrades come ahead of Meta's second quarter earnings report, scheduled for July 30.

TD Cowen analyst John Blackledge reiterated his buy call and raised his price target for Meta stock to $800 from $700, citing expected Q2 revenue growth of 16% driven by video monetization and engagement gains [1]. Wells Fargo analysts also increased their target to $783 from $664, while Roth analysts moved their target to $740 from $620, attributing the changes to improving outlooks from the easing of tariffs [1].

On Tuesday, Bloomberg reported that Meta is spending approximately $3.5 billion for a 3% stake in European eyewear manufacturer EssilorLuxottica, reflecting a deepening partnership to develop AI-powered smart glasses [1]. This investment follows the success of Meta's AI-powered Ray-Bans last year.

Bank of America Securities analyst Justin Post raised his price target to $775, maintaining a Buy rating, and cited Meta's AI investments as a key driver of future revenue growth [2]. Post's upgrade comes as Meta is investing heavily in AI, with plans for a 1-gigawatt supercluster (Prometheus) and a 5-gigawatt data center (Hyperion), indicating strong confidence in future revenue growth driven by AI-powered advertising innovations.

Meta stock was up about 2% at $733.01 in recent action on the stock market today. Analysts polled by FactSet project Meta will post adjusted earnings of $5.83 per share, up 13% year over year, with sales expected to rise 14% to $44.6 billion [1].

After slumping during the spring, Meta stock has rallied more than 50% since mid-April, putting the stock back at record highs by the end of last month. Analysts had mostly revised their targets for Meta stock downward earlier this year due to concerns about tariffs weighing on advertising spending [1].

The average target price for Meta stock among analysts was $720.53 as of Wednesday, slightly below Meta's actual price. Analysts will be watching for updates on Meta's spending plans, particularly the "Meta Superintelligence Lab" focused on AI research and products [1].

Meta stock is up 26% overall this year, the best gain among the Magnificent Seven stocks. Shares of the social media giant have an IBD Composite Rating of 96 out of a best-possible 99, according to IBD Stock Checkup [1].

References:
[1] https://www.investors.com/news/technology/meta-stock-price-target-hike-q2-results-2025-facebook-ai/?mod=newsviewer_click&refcode=aflMarketWatch&src=A00619
[2] https://finance.yahoo.com/news/meta-just-boosted-stake-ray-154708586.html