Meta Stock Surges Over 10% as Analysts Boost Price Target, Citing AI Leadership
Meta Platforms (NASDAQ: META) shares experienced a significant rally on Thursday, closing up 10.4% at $738.31. The surge was primarily driven by a bullish analyst note from BofA Securities, which raised its price target on the social media giant's stock to $885 from $810, maintaining a 'Buy' rating.
The upgrade highlights growing Wall Street confidence in Meta's strategic pivot and its investments in artificial intelligence infrastructure, which analysts believe are starting to yield tangible returns ahead of many peers in the sector.
The market's enthusiastic response unfolded against a mixed financial backdrop. For the fourth quarter of 2025, Meta reported a net income of $22.77 billion, a 9% increase from the $20.84 billion reported in the same period last year. Quarterly revenue jumped 24% year-over-year to $59.89 billion.
For the full fiscal year 2025, however, the picture was more nuanced. While annual revenue climbed 22% to $200.97 billion, net profit saw a slight 3% decline to $60.46 billion. This dip reflects the company's continued heavy expenditure on its long-term bets, including its Reality Labs division and expansive AI research and development.
"We had strong business performance in 2025," said Meta founder and CEO Mark Zuckerberg in a statement. "I'm looking forward to advancing personal superintelligence for people around the world in 2026."
Looking ahead, the company provided first-quarter revenue guidance in the range of $53.5 billion to $56.5 billion, signaling expectations for sustained top-line growth.
Market Reaction & Analyst Commentary:
"The market is clearly rewarding Meta for its AI execution," said David Chen, a portfolio manager at Horizon Capital. "The price target upgrade isn't just about next quarter's earnings; it's a bet that Meta's AI infrastructure will become a core profit driver, potentially creating new revenue streams beyond advertising."
Sarah Wilkins, a tech analyst at ClearView Insights, offered a more measured take: "The revenue growth is impressive, but the profit contraction year-over-year is a reality check. Investors are betting heavily on a future AI payoff that is still in the development phase. The valuation now demands near-perfect execution."
A sharper critique came from Marcus Thorne, editor of the 'Skeptical Investor' newsletter: "This is classic market myopia. A 10% pop because one bank tweaks its model, while ignoring a full-year profit decline? It's a sugar high. Zuckerberg is asking for immense faith and capital for his 'superintelligence' vision while core profitability softens. The hype is drowning out the fundamentals."
Meanwhile, Anya Desai, a retail investor and founder of a tech blog, reflected a common user perspective: "As a daily user, I see the AI integrations everywhere—better feeds, more relevant ads, new creator tools. It feels like the platform is getting smarter. The stock move suggests Wall Street is starting to see and value that same shift."
The rally positions Meta as one of the day's top performers in the tech-heavy Nasdaq index, underscoring the sector's sensitivity to AI-related developments and analyst sentiment.