Meta Stock Forecast: S&P 500 Gainer & Social Media Growth Insights

Meta Platforms is standing out as the only Magnificent Seven company living up to its name today. Shares of the social media giant jumped more than 9% on Thursday, hitting year-to-date highs after its fourth-quarter earnings report exceeded Wall Street expectations across multiple metrics. The results highlight how Meta’s investments in artificial intelligence are fueling growth and strengthening its competitive edge in the tech sector.

Investors responded decisively, pushing Meta (META) into the ranks of the top gainers in the S&P 500. It was the sole member of the seven major U.S. tech stocks advancing, while peers like Nvidia, Alphabet, Microsoft, Amazon, and Tesla saw declines, and Apple managed only modest gains. This divergence underscores Meta’s unique momentum and positions it as a leader in the current market rally.

Meta’s latest earnings report is reigniting optimism in the AI trade, proving that the company’s multibillion-dollar investments in artificial intelligence are beginning to deliver tangible results. The strong performance signals that AI-driven innovation can generate near-term returns, strengthening investor confidence in both Meta and the broader tech sector.

For traders, this momentum highlights how AI adoption is evolving from long-term speculation into measurable financial impact. Meta’s success positions AI as a critical growth driver, reinforcing its role in shaping stock forecasts, trading strategies, and investor sentiment across the market.

Positive sentiment around Meta is driving analysts to issue bullish reports and raise price targets, reflecting optimism about its ability to boost engagement and monetization through machine-learning. All 24 analysts tracked by Visible Alpha currently rate the stock a buy, with an average price target of $868 implying about 20% upside from recent levels. CEO Mark Zuckerberg emphasized during Wednesday’s call that Meta’s heavy investment in AI is designed to enhance both user experience and business performance across its core apps.

Meta’s fourth-quarter earnings per share came in at $8.88, beating Visible Alpha’s $8.24 estimate. Revenue reached $59.9 billion, surpassing expectations of $58.4 billion, while guidance for the current quarter of $53.5 billion to $56.5 billion also exceeded Street forecasts. The company plans to roll out new AI models and products this year, reinforcing its growth strategy. Wedbush analysts Scott Devitt and Dan Ives highlighted Meta’s potential to monetize its AI assistant across business use cases, advertiser automation, and hardware integration, raising their price target to $900 from $880.

Meta’s expanding AI capabilities and planned rollouts are fueling optimism among analysts, who see strong growth potential ahead. Meta AI, the company’s multilingual virtual assistant integrated across Facebook, Instagram, WhatsApp, and Ray-Ban smart glasses, has already surpassed one billion monthly active users. This milestone underscores the scale of Meta’s AI adoption and its ability to drive engagement across platforms.

Morgan Stanley analysts, led by Brian Nowak, highlighted Meta’s fourth-quarter improvements in engagement and monetization, noting that the company’s continued investment in AI gives them confidence in accelerating revenue growth. They raised their price target to $825 from $750, while Jefferies analysts boosted theirs by $90 to $1,000, reflecting heightened bullish sentiment.

Meta’s capital expenditure guidance for 2026, ranging from $115 billion to $135 billion, exceeded Street expectations of around $110 billion. While the higher spending initially raised questions, investor reaction has been positive, signaling approval of Meta’s aggressive investment strategy. The company’s commitment to AI innovation and infrastructure is being viewed as a long-term growth driver, reinforcing its leadership in the tech sector.

Meta’s fourth-quarter earnings beat, surging revenue, and aggressive AI rollouts have reignited investor confidence, pushing the stock to year-to-date highs and positioning it as the standout among the Magnificent Seven. Analysts are raising price targets across the board, citing stronger engagement, monetization improvements, and the potential for AI-driven products to accelerate growth. Despite higher capital expenditure guidance, investor reaction remains positive, signaling approval of Meta’s long-term strategy.