Overview
- Top Meta bull MoffettNathanson cut its price target to $750, warning the company is overspending on AI infrastructure and forecasting margin compression even as it kept a buy rating.
- The firm estimates Meta’s capex-to-revenue ratio could reach 47% in 2026, far above peers, and argues Meta lacks a clear path to directly monetize generative AI without a cloud platform.
- Meta has guided 2025 capital expenditures of $70 billion to $72 billion and signaled even larger dollar growth in 2026, a trajectory that has unsettled investors.
- Shares have fallen roughly 16% to 20% over recent weeks, with Fast Company noting the stock is slightly down year to date despite earlier 2025 gains.
- Underlying results remain strong, including Q3 revenue up 26% to $51.2 billion and AI-driven engagement gains, while prominent commentators such as Jim Cramer characterize the pullback as a buying opportunity.