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Meta Draws Fresh Buy Calls as AI Capex Plan Weighs and Talks Emerge to Boost Smart-Glasses Output

Analysts describe the selloff as overdone, pointing to Meta’s low forward P/E versus mega-cap peers.

Overview

  • TD Cowen raised its Meta price target to $820 after an ad buyer survey that projects Facebook and Instagram will grow global digital ad share from 30% to 34% by 2030.
  • Bloomberg reported Meta and EssilorLuxottica are in talks to potentially double annual Ray-Ban Meta glasses production to about 20 million units by the end of 2026, with capacity discussions above 30 million if demand warrants.
  • Truist reiterated a Buy and an $875 target on January 14, arguing investor concerns over higher capex and opex are largely reflected in the valuation and forecasting results near the high end of expectations.
  • Yardeni Research data show Meta has the lowest forward P/E among the Magnificent Seven, while consensus still models EPS rising to $28.70 in 2026 and $33.11 in 2027.
  • Jim Cramer criticized Mark Zuckerberg’s spending comments as damaging to the stock, even as Bank of America maintains a Buy rating with an $810 target.