Meta’s Stock Set To Open at New Highs as Earnings Impress & Analyst Raises

Piper Sandler has increased its price target for Meta Platforms Inc.'s (NASDAQ: META) shares from $670 to $775, maintaining an Overweight rating. This revision reflects a positive outlook following the company's strong quarterly results and strategic advancements.

EPS came in at $8.02, a massive 19% beat on the $6.74 expected. Revenue also came in above expectations, with $48.38 billion against the consensus of 46.99 billion reflecting a 2.96% beat.

Meta is currently trading at $692.11 in the pre-market, above its 52-week high in regular trading of $682.58. This upbeat outlook by Piper Sandler follows Meta's 23.06% revenue growth over the past year, coupled with healthy gross profit margins of 81.5%.

Despite these positives, Meta’s revenue guidance for the first quarter was marginally below expectations due to a 3% foreign exchange rate impact. Nevertheless, Meta CEO Mark Zuckerberg expressed optimism regarding potential growth opportunities, particularly in artificial intelligence (AI) technologies and platform enhancements on Facebook.

Piper Sandler’s adjustment also includes a $4.5 billion reduction in Meta's projected free cash flow for 2025, alongside a 1% increase in full-year revenue estimates but a 3% reduction in EBITDA projections. These changes reflect a cautious yet optimistic stance on the company's future financial performance.

Analysts are generally optimistic about Meta's strategic direction, particularly its emphasis on AI, expected to play a pivotal role in its future performance. While acknowledging challenges such as the foreign exchange headwinds, analysts ascribe the projections a promising outlook bolstered by the company's strategic initiatives.