Meta Platforms, Inc. (NASDAQ:META) Raises Price Target to $825 Following Strong Q2 Earnings

Meta Platforms raised its price target to $825 after delivering strong Q2 earnings, beating expectations on both top and bottom lines. Growth in Meta's Family of Apps accelerated, reflecting the potential of heightened capital expenditures and hiring frenzy to pay off as the company further integrates AI into its products. DA Davidson analyst Gil Luria maintained a "Buy" rating on the stock.

Meta Platforms (NASDAQ: META) reported its second-quarter 2025 financial results, demonstrating robust growth and investor confidence in its AI-driven strategy. The company's revenue increased by 22% to $47.5 billion, surpassing analyst expectations of $44.80 billion. Adjusted earnings per share (EPS) climbed 38% to $7.14, outpacing the forecast of $5.92 per share [2].

Key performance indicators (KPIs) also showed strong growth. Daily active people (DAU) and average price per ad (APA) both increased, indicating that Meta's AI tools are effectively enhancing user experience and monetization. The company's AI strategy, particularly its investment in AI superintelligence, is a key driver of these positive outcomes [3].

Meta has bolstered its 2025 capital expenditure (CapEx) guidance by $1 billion, reflecting a total range of between $66 billion and $72 billion. This increase underscores the company's commitment to its AI initiatives, including the development of AI superintelligence, which is projected to drive long-term growth and profitability [1].

Investors have responded positively to these results, with Meta shares rising by 11% in after-hours trading. This performance is a testament to the market's confidence in Meta's AI strategy and its ability to compete with rivals like Microsoft and Google in the AI race [3].

References:
[1] https://www.adexchanger.com/platforms/meta-crushed-q2-ad-revenue-oh-and-its-investing-in-ai-thats-way-smarter-than-you/
[2] https://www.ainvest.com/news/meta-platforms-shatters-q2-expectations-11-stock-surge-2507/
[3] https://investor.atmeta.com/investor-news/press-release-details/2025/Meta-Reports-Second-Quarter-2025-Results/default.aspx