Meta Q4 Blowout Ignites Wall Street Frenzy as AI Optimism Sends Price Targets Soaring

 Meta Platforms (META) is back in full bull mode.

Wall Street rushed to raise price targets after Meta crushed Q4 expectations, driven by surging ad demand and early—but increasingly measurable—returns from its massive AI investments.

Shares jumped more than 8% in premarket trading Thursday, as analysts piled in with fresh upside calls.

Big Banks Go Bigger on Meta

• Barclays raised its price target to $800 from $770, citing a sharp rebound in advertising momentum. Revenue growth north of 30%, the firm said, has eased lingering concerns around rising costs and capital intensity.

• UBS boosted its target to $872 from $830, maintaining a Buy rating and forecasting higher earnings estimates for 2026 and 2027 as AI monetization accelerates.

• Bank of America lifted its target to $885 from $810, reaffirming its Buy call and pointing to tangible returns from Meta’s investment cycle.

Morgan Stanley, Jefferies, and Piper Sandler also raised targets, with Jefferies noting that Meta’s revenue surge confirms AI-driven growth is finally validating years of heavy spending.

Q4 Numbers That Changed the Narrative

Meta posted Q4 revenue of $59.89 billion and EPS of $8.88, blowing past analyst estimates of $58.59 billion and $8.02, according to Fiscal AI data.

That performance is shifting sentiment fast.

Barclays emphasized that Meta remains the undisputed leader in digital advertising, with AI providing additional upside not yet fully reflected in forecasts.

AI Payoff Is Starting to Show

UBS expects Meta’s AI strategy to materially lift earnings power over the next two years, while Bank of America highlighted the company’s ability to fund expansion internally as free cash flow is projected to turn positive in 2026.

BofA also noted that Reality Labs losses are likely to peak this year, removing another long-standing overhang on the stock.

Bigger Bets Ahead

Meta signaled it’s not slowing down.

The company plans to ramp capital expenditures sharply in 2026, projecting $115 billion to $135 billion in spending—up from roughly $72 billion in 2025—doubling down on AI infrastructure and long-term growth.

Bottom line: Wall Street is starting to believe Meta’s AI gamble is paying off—and the price targets suggest analysts think this run is far from over.