Meta Platforms Stock: Can It Reach $935? One Wall Street Firm Thinks So

Meta Platforms (META) stock has been on a tear recently, with shares surging to new highs. The company's strong financial performance, AI progress, and user base growth have analysts bullish on the stock's prospects. However, one Wall Street firm stands out with an ambitious price target: $935. Let's dive into the factors driving this optimism and explore whether Meta Platforms stock can indeed reach this lofty goal.



Strong Financial Performance

Meta Platforms reported impressive financial results for the fourth quarter and full year 2024. Revenue increased by 21% and 22% year-over-year, respectively, while income from operations grew by 43% and 48%. The company's operating margin also improved to 48% in the fourth quarter, up from 41% in the same period last year. These strong financial results demonstrate Meta's ability to generate significant value for shareholders.

AI Progress and User Base Growth

Meta Platforms has made significant strides in AI, with advancements in AI-powered glasses and the future of social media. The company's AI efforts, including Meta AI and Llama adoption, have contributed to its strong performance. Additionally, Meta's family daily active people (DAP) increased by 5% year-over-year in the fourth quarter of 2024, reaching 3.35 billion on average for December 2024. This growth in user base contributes to the company's revenue and advertising opportunities.

Investment in Core Business

Meta Platforms plans to make significant investments in its core business in 2025, which is expected to drive strong revenue growth throughout the year. The company's guidance for the first quarter of 2025 reflects 8-15% year-over-year growth in total revenue. This commitment to investing in its core business demonstrates Meta's confidence in its long-term prospects and ability to generate value for shareholders.

Analyst Price Targets and Recommendations

According to 47 analysts, the average price target for META stock is $714.0, which is a decrease of -3.08% from the current price of $736.67. This positive sentiment can be attributed to several factors, including strong financial performance, AI progress, user base growth, and investment in the core business. The consensus rating is "Strong Buy," indicating that analysts are generally optimistic about the company's prospects.

Risks and Challenges

While Meta Platforms' prospects look promising, investors should be aware of the potential risks and challenges the company faces. The regulatory environment, particularly in the EU and the US, could significantly impact Meta's business and financial results. Additionally, competition from other tech giants and technological uncertainties may pose challenges to the company's growth and market position.

Conclusion

Meta Platforms stock has the potential to reach $935, as one Wall Street firm believes. The company's strong financial performance, AI progress, user base growth, and investment in the core business contribute to analysts' bullish outlook. However, investors should be aware of the potential risks and challenges, including the regulatory environment and competition from other tech giants. By carefully considering these factors, investors can make more informed decisions about Meta's stock price and future prospects.