Meta Stock Jumps 4% on Strong Earnings, AI Growth

Meta Platforms, the parent company of facebook and Instagram, saw its stock price surge by over 4% in early trading on Thursday. Despite the current stock price remaining below its 2025 high, it has recovered from the lows experienced in April. The surge in stock price was driven by the company's quarterly financial results released the previous evening, which exceeded Wall Street's expectations. The company reported higher-than-anticipated earnings and revenue, and highlighted the increasing usage of its artificial intelligence products. Additionally, meta reaffirmed its plans for significant capital expenditures.

Prior to the earnings release, analysts on Wall Street had already expressed a bullish sentiment towards Meta's stock. Post-earnings, several analysts further intensified their bullish outlook. One major bank increased its target price by 50 dollars to 690 dollars, while another raised its target price by 65 dollars to 675 dollars. The average target price tracked by a platform was approximately 689 dollars.

One of the banks noted, "Achieving outstanding performance and strong growth on such a large base is not an easy task. However, we believe that Meta is clearly aware that with excellent execution and transparency in artificial intelligence, Wall Street will be more patient with its investments in this area."

An analyst from a Canadian investment firm maintained a target price of 825 dollars for Meta's stock, which is significantly higher than any other target price currently tracked. If this target is met, it would represent a new all-time high for Meta's stock price. The analyst acknowledged potential macroeconomic and regulatory challenges but emphasized that the stock remains undervalued given its recent performance and the ongoing improvements in its AI-driven core business functions.