Why This Top Analyst Sees Meta Platforms Stock Surging 77%

Core Viewpoint - Wall Street is increasingly focused on Meta Platforms Inc. as the company makes strategic moves to position itself for long-term growth in artificial intelligence (AI) [1] Group 1: Strategic Developments - Meta has made several strategic announcements, including a shift towards nuclear power, the launch of the "Meta Compute" initiative, and the appointment of Dina Powell McCormick as President and Vice Chairman [2][3] - The company is planning significant expansions in data center capacity, aiming for "tens" of gigawatts of new capacity this decade, up from approximately 5 GW currently [5] - Meta's nuclear plans could increase its U.S. nuclear footprint to 7.7 GW over the next decade, with 3.3 GW linked to high-confidence power purchase agreements [5] Group 2: Financial Outlook - Meta is expected to achieve fourth-quarter 2025 sales growth of 17% to 24%, with consensus around 21% [7] - Projected fourth-quarter revenue is $58.39 billion, with an expected EPS of $8.21 [9] - For fiscal 2025, revenue is projected at $199.46 billion and EPS at $29.02 [9] Group 3: Reality Labs and Cost Management - Reality Labs is projected to generate around $2.227 billion in revenue for 2025, with an operating loss exceeding $17 billion [8] - Job cuts of 10%–15% in Reality Labs could lead to savings of approximately $500 million to $1 billion [8] - Stronger sales of AR-glasses and potential production expansion may help reduce losses in 2026 [8]