Meta stock outlook ahead of Q4 earnings: strong comeback or continued slump?

Core Viewpoint - Meta Platforms is expected to see a rebound in its stock price following its upcoming earnings report, with significant growth projected in both earnings and sales [1][3]. Financial Performance - The company is anticipated to report earnings of $8.15 per share and sales of $58.4 billion for fiscal Q4, reflecting a 1.6% increase in earnings and a 21% increase in sales year-over-year [1]. - Currently, Meta's stock is down over 15% from its 52-week high [2]. Analyst Insights - James Cordwell from Rothschild & Co Redburn has upgraded Meta to a "buy" rating and set a price target of $900, indicating a potential upside of 38% from current levels [3]. - Cordwell emphasizes that the upcoming fiscal year 2026 outlook presents a favorable opportunity for investors to build positions in Meta [4]. AI and Advertising Potential - Meta's advertising business is described as a "demand machine," with potential for further acceleration through advancements in AI technologies [5]. - The company is well-positioned to benefit from AI developments, particularly in creating agentic AI experts and transforming entertainment through AI video [6]. Technical Analysis - Technical indicators suggest a potential rally for Meta shares, as they are trading above their 50-day moving average, which may lead to further acceleration post-earnings [8]. - The consensus rating for Meta is currently a "strong buy," with a mean target price of approximately $835 according to Barchart [9].