Loop Capital reiterated its Buy rating on Meta Platforms Inc., maintaining a $940.00 price target after the social media company reported fourth-quarter results and gave first-quarter guidance that exceeded investor expectations. The firm’s target is below the analyst high target of $1,117, according to InvestingPro data, and falls within a broader consensus that remains strongly bullish, with an aggregate analyst score of 1.33 (where 1 corresponds to Strong Buy).
Meta’s recent quarter reflected strength across key metrics. The company delivered an impressive gross profit margin of 82.01%, and its trailing twelve-month total revenue reached $189.46 billion. Loop Capital highlighted the advertising business as the central driver of momentum, pointing to solid upside in the fourth quarter and guidance that implies meaningful acceleration heading into the first quarter.
Despite the positive top-line signal, Loop Capital and other observers noted that Meta’s spending outlook is materially above consensus forecasts. That elevated expense guidance followed significant upward revisions to spending expectations that were discussed during the company’s third-quarter commentary. The firm emphasized that while spending is higher, ongoing infrastructure investments are starting to show returns, a development that should help to alleviate a portion of investor concern around elevated capital and operating outlays.
Market reaction to the earnings initially swung negative, with the stock dipping after the release, but it recovered in extended trading and rallied roughly 7% in after-hours trading, according to the report cited by analysts.
Other sell-side firms also updated their views in light of Meta’s results. Stifel lifted its price target to $820, citing a "healthy acceleration" embedded in the first-quarter guidance. Evercore ISI raised its target to $900 and highlighted a potential roughly 25% upside based on forward earnings estimates. Canaccord Genuity set a $930 target, noting that Meta’s advertising revenue expanded 23% year-over-year. DA Davidson moved its target to $850 after the company delivered revenue and earnings above expectations. Oppenheimer reiterated a Perform rating, observing that Meta’s fundamentals are at peak levels, supported by AI-enhanced engagement and new product introductions.
Collectively, these revisions and reiterations underscore a broadly constructive reception among analysts to Meta’s recent results and near-term outlook. Loop Capital’s Buy stance rests on continued advertising momentum, sustained gross margins, and evidence that large-scale infrastructure spending is beginning to generate positive returns. At the same time, the firm and others acknowledge that the company’s elevated spending path will be an area of investor focus as management executes on product and infrastructure priorities.
Summary
Loop Capital has kept a Buy rating and $940.00 price target for Meta following strong fourth-quarter performance and an upbeat first-quarter outlook. The firm identified advertising momentum and improving returns from infrastructure investments as primary positives, while noting a spending outlook that is higher than consensus. Several other analysts adjusted targets upward or reiterated views after the earnings release.
Key points
- Loop Capital reaffirmed a Buy rating on Meta with a $940.00 price target, below an analyst high of $1,117 per InvestingPro data.
- Meta posted an 82.01% gross profit margin and $189.46 billion in trailing twelve-month revenue; advertising momentum and Q1 guidance were highlighted as key positives.
- Spending guidance was substantially higher than consensus, though infrastructure investments are starting to show positive returns; multiple peers raised price targets following the results.
Risks and uncertainties
- Elevated spending outlook: Management’s higher expense guidance could pressure future profitability if spending does not translate into expected returns - this affects tech and capital-intensive segments.
- Market volatility around results: The stock’s initial decline after the earnings release, followed by a roughly 7% after-hours rally, highlights investor sensitivity to earnings and guidance - relevant to equity market and investor sentiment dynamics.
- Investor concerns over infrastructure investments: While Loop Capital noted that these investments are beginning to show returns, ongoing execution risk remains around realizing those returns at scale - an issue for investors focused on long-term capital allocation in the tech sector.
Tags: Meta, Advertising, Tech, Earnings, AI