Is Meta Stock Headed For $900?

Core Insights - Meta Platforms reported Q4 2025 revenue of $59.89 billion, exceeding the $58.41 billion forecast, with an EPS of $8.88, up 8.4% from the consensus of $8.19 [2] - The Q1 2026 revenue forecast is between $53.5 billion and $56.5 billion, significantly above the $51.4 billion expected by analysts, indicating a 30% growth acceleration [3] Financial Performance - Meta's capital expenditure (Capex) for 2026 is projected to be between $115 billion and $135 billion, a substantial increase from the $72.22 billion invested in 2025 [5] - Reality Labs reported a loss of $6 billion in the quarter, which is about 10% of total revenue, but the market is accepting these losses as long as advertising revenue continues to grow above 20% [6] Market Position - The stock is trading at a trailing P/E of approximately 30x, with a Q4 EPS of $8.88 and an annual EPS of $23.50 for 2025 [7] - The revenue growth of 24–30% justifies the 30x multiple compared to peers, with a current share price valuation of $843 and an expected upside potential of over 20% [9] Strategic Initiatives - Meta is focusing on monetizing its AI investments, with plans to integrate large language models into its recommendation systems for Instagram and Facebook [5] - The company aims to cap losses from Reality Labs in 2026, with expectations of gradual decreases in losses thereafter [6]