DA Davidson has lifted its price target on Meta Platforms Inc. to $850 from $825 and kept a Buy rating in the aftermath of Meta’s fourth-quarter 2025 results. The firm’s revision follows a quarter that, according to DA Davidson’s read of the numbers, outpaced consensus on both revenue and earnings.
Meta’s market valuation stands at $1.69 trillion and the company is trading at a price-to-earnings ratio of 29.65. InvestingPro data included with the report flags that this multiple is high relative to near-term earnings growth.
Key financials cited in the analysis show Meta maintaining very strong profitability metrics, with gross profit margins of 82.01%. Over the last twelve months the company recorded revenue growth of 21.27%, producing total revenue of $189.46 billion.
A central element of the update was Meta’s capital expenditure guidance. Management is projecting approximately $125 billion at the midpoint as the company steps up spending on computing infrastructure and talent acquisition. DA Davidson highlighted that this elevated investment level is intended to bolster Meta’s competitiveness in the race for frontier models.
Company management has characterized 2026 as a potential inflection point, expecting dramatic workload shifts as new models and applications take hold. Meta plans to introduce additional models and products over the coming months, a roadmap that DA Davidson cites in sustaining its bullish stance on the stock.
Other broker activity has followed Meta’s quarterly disclosure. Truist Securities raised its price target to $900 from $875 while maintaining a Buy rating. Truist pointed to Meta’s stronger-than-expected fourth-quarter showing and a first-quarter growth projection of roughly 30% as reasons for the higher target.
Oppenheimer, for its part, reiterated a Perform rating. The firm noted that Meta’s fundamentals appear likely at peak levels, attributing strength to AI-enhanced engagement and the rollout of new products. Oppenheimer also underscored that Meta’s fiscal 2026 revenue guidance sits materially above Street expectations.
Taken together, these analyst moves reflect continued confidence among some equity research desks in Meta’s near-term growth trajectory and its strategic investments in compute and talent. At the same time, elevated valuation multiples and substantial planned capital spending remain focal points for investor debate.
Summary
DA Davidson raised its Meta price target to $850 and retained a Buy rating after Meta beat Q4 2025 revenue and earnings expectations. The company reported strong margins and double-digit revenue growth, and it signaled roughly $125 billion in capital spending aimed at compute and talent to compete in frontier AI model development. Truist raised its target to $900 and kept a Buy rating; Oppenheimer maintained a Perform rating while noting peak fundamentals and above-Street FY2026 revenue guidance.