Meta Platforms (META) Dips Amid Bullish Analyst Calls: Why Wall Street Sees Major Gains Ahead

TLDR

• Royal Bank of Canada maintained its Outperform stance on META, keeping an $810 price objective that suggests approximately 30% potential gains.
• Shares traded down 1.6% at $622.58, operating within a 52-week band of $520.26 to $796.25.
• First-quarter 2025 results exceeded projections with earnings per share of $10.44 compared to the $6.67 forecast, alongside revenue of $56.31 billion reflecting 33.1% annual growth.
• Arete Research elevated META to Buy from Neutral with a $735 valuation, highlighting adaptable expense management, subscription momentum, and artificial intelligence advancements.
• Wolfe Research kept its Outperform designation with an $800 objective, projecting 22% revenue expansion in 2027 versus the Street’s 19% consensus.

Meta Platforms saw shares retreat on Monday, declining 1.6% to $622.58 during trading, though the pullback hasn’t shaken Wall Street’s conviction in the tech giant’s trajectory.

Meta Platforms, Inc., META

Royal Bank of Canada stood by its Outperform designation on META while maintaining its $810 valuation. This price objective represents approximately 30% appreciation potential from current trading levels.

The consensus among equity research analysts appears constructive. According to MarketBeat tracking, META holds a Moderate Buy rating with a mean price objective of $840.19. The breakdown shows four Strong Buy recommendations, 34 Buy ratings, and nine Hold assessments.

One of Monday’s standout analyst moves came from Arete Research. Analyst Rocco Strauss lifted his rating on META from Neutral to Buy, simultaneously increasing his valuation from $614 to $735. His thesis centers on META’s adaptable cost infrastructure, expanding subscription business, and meaningful strides in artificial intelligence.

Strauss envisions META potentially transforming into what he describes as a “neocloud with excess compute” — essentially a business model where the company monetizes surplus AI computational resources. This perspective offers a fresh lens through which to view the social media behemoth.

First Quarter Performance Exceeded Projections

The optimism from analysts has solid fundamental support. META’s latest quarterly report, released on April 29, demonstrated impressive performance. The company delivered earnings per share of $10.44 versus the consensus forecast of $6.67 — exceeding expectations by $3.77 per share. Top-line results reached $56.31 billion, representing 33.1% year-over-year expansion and modestly surpassing the $55.56 billion estimate.

Return on equity registered at 36.93% while net profit margin hit 32.84%. Wall Street currently anticipates full-year earnings per share of $29.35.

The equity’s 50-day moving average sits at $617.84, with the 200-day average positioned at $636.92, placing Monday’s $622.58 trading level roughly aligned with recent technical patterns.

Wolfe Identifies Further Appreciation Potential

Wolfe Research reaffirmed its Outperform rating on May 21 alongside an $800 price objective. The research shop observed that META trades at roughly 16 times projected 2027 earnings, a valuation multiple it considers attractive for a franchise of META’s caliber.

Wolfe projects 2027 revenue growth of 22% on an annual basis, outpacing the Street’s 19% projection. However, the firm acknowledged legitimate investor apprehensions: uncertainties surrounding peak growth dynamics, sparse near-term positive catalysts, negative free cash flow generation, and capital expenditure requirements approaching $145 billion annually.

Analyst sentiment isn’t uniformly positive. Cantor Fitzgerald reduced its price objective from $850 to $750 in late April, while Wall Street Zen shifted to a Hold recommendation in mid-May. Conversely, Tigress Financial increased its target to $945 accompanied by a Strong Buy rating.

Regarding insider transactions, CFO Susan Li divested approximately 9,195 shares in May at $607.84 per share through a predetermined 10b5-1 arrangement connected to tax liabilities. COO Javier Olivan sold 2,778 shares in April. Collectively, company insiders have sold roughly 40,890 shares valued at approximately $25.3 million during the trailing 90-day period.

Institutional investors control 79.91% of outstanding shares. Vanguard maintains a position of nearly 200 million shares, while State Street expanded its holdings by 5.1% during the fourth quarter.

META operates with a market capitalization of $1.57 trillion, a price-to-earnings multiple of 22.93, and a beta coefficient of 1.23.

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