Meta (META.US) Q2 Earnings Win Overwhelming Praise from Wall Street! Major Brokerages Rush to Raise Targets
We noticed at Zhishang Financial APP that Meta's explosive quarterly performance has won over the applause of Wall Street. Following the publication of eye-catching earnings reports, analysts who were already optimistic about this stock suddenly and urgently revised their profit predictions and target prices.
Richmond Bank analyst Ken Gawrelski pointed out that Meta brought "far beyond expectations" comprehensive surprises, including higher revenue and earnings per share, as well as "2026 operating expenses/capital expenditures data significantly exceeding expectations".
He gave Meta a "buy" rating and raised the target price from $783 to $811, with an optimistic scenario target price of $981, believing that "Reels short videos, Advantage+ advertising platforms, and advertising pricing improvements will continue to drive stock prices higher. He added that "strong growth prospects offset investment pressures, driving investors' expectations for 2026/2027 earnings per share warmer upward".Morgan Stanley analyst Brian Nowak raised the target price from $750 to $850 and gave an optimistic scenario estimate of $1100, believing that "AI investments will boost user engagement and generate new products/tools, supporting excess advertising revenue growth".
JPMorgan Chase analyst Doug Anmuth raised the target price from $795 to $875, particularly highlighting capital expenditures, noting that although the 2025 capital expenditure guidance upper limit "remains at $72 billion, the company indicated that it may reach around $100 billion in 2026" for its "universal superintelligence" vision. Anmuth said: "It's impressive that despite facing challenges from Llama 4 model releases and AI team major adjustments, Meta's core advertising business remains strong, with ad display volume growth accelerating to 11%".
JPMorgan analyst Brent Thill reminded investors to pay attention: potential capital expenditure growth in 2026 may limit short-term free cash flow, or cause operating expenses to grow higher and put pressure on profitability in the fourth quarter. But he also maintained a bullish stance, raising the target price from $845 to $950 and giving an optimistic target price of $1126, believing that "virtual reality and metaverse layout will make Meta occupy a favorable growth position over the next decade", while Messenger and WhatsApp's monetization speed is faster than expected, and Instagram's new features also enhance user stickiness.