Key insights
- An analyst expresses strong bullish sentiment on Meta (META), projecting a price target of $725-$936 within 12-18 months based on strong ad revenue growth driven by AI improvements and market share gains from Google Search. The analysis suggests Meta's AI-driven ad monetization is already impacting revenue, justifying high capex and supporting a 21-26x P/E multiple on FY27E EPS. This positive outlook could boost investor confidence in META and the broader tech sector.
I am just curious what price do you guys think META should be to match the MSFT at $350 feel?
I am really bullish on META after the most recent earnings print and I am pretty confident the stock price will hit $750-800 in the next 12-18 months.
This is my takeaway:
Meta just did ~33% YoY ad growth to ~$55B in Q1. At this size that’s strong, and it’s not coming from users, it’s better monetization. AI is already improving ranking, targeting, and conversions, so each impression is worth more.
More interesting is the incremental share shift vs Google Search. In Q4’25 Meta’s FOA ad growth was ahead by ~$2.3B, and in Q1’26 that widened to ~$4B. A few years ago Search revenue was ~42% larger, now it’s closer to ~11%. That’s a pretty fast compression.
The key difference is Search captures intent, Meta is starting to shape and capture it earlier through feeds. As recommendations improve, they can show you ads before you even search. So they don’t need to beat Search, just keep taking more of the incremental ad dollars.
Capex is high, but it’s going into the core ad engine. Even small gains in conversion on a ~$55B quarterly base can drive meaningful revenue. AI monetization isn’t future, it’s already showing up in the numbers.
Valuations:
Base Case: 20–25% revenue growth; 21x P/E multiple on $34.01 FY27E EPS; $725–$735 price target.
Bull Case: 30–35% revenue growth; 26x P/E multiple; $930–$936 price target.