Stifel reaffirmed a Buy recommendation on Meta Platforms Inc. and left its price target at $785.00 after the company released fourth-quarter results. At the time of the update, Meta shares traded near $668.73 and the market capitalization stood at $1.69 trillion, keeping the company prominent within the Interactive Media & Services industry.
Meta reported fourth-quarter revenue of $59.9 billion, a 24% increase compared with the year-ago quarter, and above the Street expectation of $58.5 billion. Operating income for the period was $24.7 billion, reflecting a 41.3% operating margin versus consensus estimates of $23.9 billion and a 40.9% margin.
On a GAAP basis, earnings per share were $8.88, beating the consensus forecast of $8.21. Family Daily Active People reached 3.58 billion, a 7% year-over-year increase that matched analyst projections. Global ad impressions rose 18% year-over-year, outpacing the expected 12% gain. Average price per ad increased by 6%, which was below the 10% rise analysts had anticipated.
For the first quarter of 2026, Meta provided revenue guidance in a range of $53.5 billion to $56.5 billion, implying 26% to 34% year-over-year growth. That outlook assumes a roughly 4% benefit from foreign exchange and sits above the consensus estimate of $51.4 billion.
Management also outlined expectations for full-year 2026 that point to higher spending. Total expenses were projected to be between $162 billion and $169 billion, representing a 38% to 44% increase from the prior year and exceeding the consensus projection of $150 billion. Capital expenditures were guided to a range of $115 billion to $135 billion, materially above the analyst expectation of $111 billion.
Several Wall Street firms responded to Meta’s results and outlook with continued positive ratings. Truist Securities reiterated a Buy rating and set a $875 price target, while Goldman Sachs kept a Buy rating with a $815 target, both citing strong fourth-quarter revenue and upbeat first-quarter revenue guidance. Other major firms maintained constructive views as well; Wolfe Research kept positive ratings across the board with price targets spanning $800 to $870. Bernstein SocGen Group reiterated an Outperform rating with a $870 target, expressing confidence in Meta despite the company’s relatively smaller visible AI presence versus some competitors.
Analysts noted the company’s larger planned spending on artificial intelligence as a point of attention. Several firms retained Buy-oriented ratings even as they flagged increased AI-related expenditures as a factor to monitor.
In other, unrelated coverage mentioned alongside the updates, BofA Securities raised its price target on Corning to $120 from $110 after a modest revenue beat in Corning’s quarterly results. That adjustment was driven by stronger performance in Corning’s Display and Hemlock segments, even as its Optical segment missed expectations.
Summary observations: Meta’s fourth-quarter results surpassed consensus across revenue, operating income and EPS. Key usage and advertising metrics also showed growth, although average ad pricing rose less than analysts expected. The company’s guidance for early 2026 implies higher revenue than consensus but signals significantly larger expense and capital commitments for the year ahead.
These outcomes will be watched closely by investors and market participants focused on interactive media, digital advertising, and technology capital deployment.