Overview
- MoffettNathanson cut its price target to $750, warning that accelerating AI investments and Reality Labs outlays pose multiyear margin risks and calling for renewed cost discipline.
- Meta shares have fallen roughly 20%–25% since late October and are trading under $600 despite strong Q3 results and robust margins.
- Management raised 2025 capex guidance and signaled even larger 2026 outlays, while reports have cited a potential $600 billion U.S. investment plan over three years for AI infrastructure and data centers.
- To fund the buildout, Meta announced a planned $30 billion multi‑tranche bond offering and secured a $27 billion Blue Owl financing package tied to its Louisiana data center project.
- Wall Street remains split, with Wedbush keeping an Outperform and a $920 target as others turn cautious, while Meta trims costs with reported layoffs of 600 in its AI unit and faces a Nov. 25 accounting disclosure promised by Michael Burry.