Meta (META) Stock Pops Following Metaverse Cuts Announcement – Could it Hit $1,000 In 2026?

Core Viewpoint - Meta Platforms is shifting its focus from the underperforming Metaverse to AI initiatives, which is seen as a positive move by analysts, potentially leading to a significant increase in share price if executed well [1][4][12]. Financial Performance and Projections - Meta's shares could trade closer to $900 per share this year if the company maintains cost discipline and AI continues to enhance business results, with a bullish case suggesting a rise to $1,000 per share by 2026 [1][3][12]. - Currently, Meta is trading between 20X and 30X forward earnings, and a re-rating closer to 30X could lead to higher share prices [3][9][11]. Strategic Shift - The recent acquisition of AI wearable company Limitless indicates a strategic pivot towards AI, reflecting a commitment to redirect resources from the Metaverse to more promising opportunities [1][4][13]. - Analysts have criticized Meta's previous heavy investments in the Metaverse, suggesting that the company has more potential in AI, which could drive better returns [5][10]. Market Reaction - Following the announcement of spending cuts on the Metaverse, Meta's stock experienced a positive reaction, indicating investor approval of the strategic shift [4][11]. - The market's perception of Meta has been affected by high operating costs, but the recent changes may help restore confidence [9][12].