Barclays Doubles Down on Meta, Lifts Price Target to $800 Amid Strong AI Investment Push
Meta Platforms, Inc. (NASDAQ: META) has secured a reinforced vote of confidence from Wall Street, with Barclays Capital reiterating its Overweight rating and lifting its price target on the social media giant to $800 from $770. The move, reported January 29, 2026, underscores a growing analyst consensus that Meta's aggressive pivot to artificial intelligence and a resurgent digital ad market are fueling a powerful growth phase.
The bank's analysts pointed to Meta's stronger-than-expected return to form in the fourth quarter, highlighted by advertising revenue growth exceeding 30% in Q1. "Meta isn't just back in business; it's setting the pace," the note indicated, emphasizing the company's sustained leadership in digital advertising. Barclays also noted that the clear trajectory toward monetizing AI innovations has helped assuage longstanding investor concerns over the company's substantial capital expenditures.
This analyst optimism comes hot on the heels of a major strategic announcement from Meta's leadership. On January 28, CEO Mark Zuckerberg outlined plans to dramatically scale the company's AI ambitions in 2026, with projected capital expenditures for AI infrastructure soaring to a range of $115 billion to $135 billion—effectively doubling the prior year's investment. This colossal commitment is aimed at training next-generation models and developing what Zuckerberg termed "super intelligence," though he acknowledged current computing capacity remains a limiting factor amid exploding demand.
The market's initial reaction was decidedly positive. Following the earnings report that revealed a 24% year-over-year revenue jump, largely driven by online advertising, Meta's shares climbed 10% in after-hours trading, signaling robust investor endorsement for its dual-track strategy of ad monetization and AI expansion.
As a cornerstone of prominent investment portfolios like the Ken Fisher Stock Portfolio's "12 Best Stocks to Buy," Meta continues to draw significant attention from both growth and value investors. However, the scale of its AI spending also frames a critical debate about long-term returns versus near-term financial pressure.
Investor Voices: A Mixed Bag of Confidence and Skepticism
David Chen, Portfolio Manager at Horizon Growth Fund: "Barclays' target revision is a logical step. Meta has successfully navigated its 'year of efficiency' and is now layering massive AI capability on top of a cash-generating advertising behemoth. The $800 target reflects the embedded optionality of their AI research, which the market is starting to price in."
Rebecca Vance, Independent Retail Investor: "I'm thrilled but also cautious. The ad rebound is fantastic, but doubling the capex to over $100 billion is a staggering bet. It feels like 'go big or go home' with AI. I'm holding, but I'm watching free cash flow like a hawk this year."
Michael Torrez, Tech Analyst at The Disruptor Blog: "This is peak hype-cycle thinking. Zuckerberg is burning cash to chase the same AGI mirage as everyone else, while the core apps face aging demographics and regulatory threats worldwide. Barclays is just following the momentum. That $800 target assumes flawless execution in both ads and AI—a fantasy. This level of spending isn't ambition; it's desperation to find the next thing before the old thing plateaus."
Arisha Kapoor, CFA, Senior Strategist at Lowell & Partners: "The key takeaway is integration. Meta's advantage isn't just AI research; it's deploying AI to make its existing ads and social products radically more effective and engaging. If they can leverage these models to boost ad targeting and user retention, the ROI on this capex could be tremendous. The market is betting they can."