Key Takeaways
- Royal Bank of Canada maintained its Outperform stance on META stock with an $810 price objective, suggesting approximately 30% potential gains.
- META shares declined 1.6% to $622.58, operating within a 52-week trading band of $520.26 to $796.25.
- First quarter 2025 results significantly exceeded projections with earnings per share of $10.44 compared to the $6.67 consensus, while revenue reached $56.31 billion, marking a 33.1% year-over-year increase.
- Arete Research elevated META to Buy with a $735 price objective, highlighting adaptable cost management, subscription revenue expansion, and artificial intelligence advancements.
- Wolfe Research sustained its Outperform view with an $800 target, projecting 22% revenue expansion in 2027 compared to the Street’s 19% forecast.
Meta Platforms traded at $622.58 during Monday’s session, experiencing modest downward pressure with a 1.6% decline, though this movement hasn’t diminished Wall Street’s optimistic long-term perspective on the social media giant.
Royal Bank of Canada maintained its Outperform assessment on META stock while preserving its $810 price objective. This valuation suggests approximately 30% appreciation potential from Monday’s trading level.
The overall analyst sentiment appears favorable. According to MarketBeat’s compilation, the consensus stands at Moderate Buy with a mean price target of $840.19. The ratings breakdown includes four Strong Buy recommendations, 34 Buy ratings, and nine Hold positions.
Arete Research delivered one of Monday’s most significant analyst actions. Rocco Strauss, the firm’s analyst, elevated META from Neutral to Buy while increasing his price objective from $614 to $735. His rationale centers on META’s adaptable expense structure, growing subscription revenues, and meaningful progress in artificial intelligence development.
Strauss envisions META potentially transforming into what he describes as a “neocloud with excess compute” — essentially a business that monetizes surplus AI computing infrastructure. This represents a compelling conceptual shift for a company primarily known for social networking platforms.
First Quarter Results Crushed Expectations
The positive analyst sentiment rests on solid fundamentals. META’s latest quarterly performance, disclosed on April 29, delivered impressive results. The company reported earnings per share of $10.44 versus consensus expectations of $6.67 — exceeding forecasts by $3.77 per share. Revenue totaled $56.31 billion, representing 33.1% year-over-year growth and modestly surpassing the $55.56 billion projection.
Return on equity measured 36.93% with net margin reaching 32.84%. Current analyst projections point to full-year earnings per share of $29.35.
The stock’s 50-day moving average stands at $617.84, while the 200-day moving average sits at $636.92, placing Monday’s $622.58 price point near recent technical trend levels.
Wolfe Research Identifies Additional Upside
Wolfe Research reaffirmed its Outperform rating on May 21 with an $800 price target. The firm observed that META trades at roughly 16 times projected 2027 earnings, which it views as undervalued for a company of META’s caliber.
Wolfe projects 2027 revenue growth of 22% year-over-year, exceeding the Street’s 19% consensus. However, Wolfe acknowledged legitimate investor concerns including questions about peak growth rates, scarce near-term catalysts, negative free cash flow generation, and approximately $145 billion in annual capital expenditures.
Not all analyst firms share the same enthusiasm. Cantor Fitzgerald reduced its target from $850 to $750 in late April, while Wall Street Zen downgraded the stock to Hold in mid-May. Conversely, Tigress Financial increased its target to $945 with a Strong Buy recommendation.
Regarding insider activity, CFO Susan Li divested approximately 9,195 shares in May at $607.84 per share, executed through a pre-established 10b5-1 trading plan related to tax obligations. COO Javier Olivan sold 2,778 shares in April. Collectively, insiders have sold roughly 40,890 shares valued at approximately $25.3 million during the past 90 days.
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 commands a market capitalization of $1.57 trillion, trades at a price-to-earnings ratio of 22.93, and carries a beta coefficient of 1.23.
