Could Meta Platforms Stock Hit $1,000 in 2026?

Core Insights - Meta Platforms is exploring growth opportunities through hardware, specifically AI glasses, but the Reality Labs segment is financially burdensome, reporting an operating loss of over $6 billion in Q4 and cumulative losses exceeding $80 billion since 2020 [1][7]. Digital Advertising and Revenue Growth - Meta's digital ad business, which constitutes nearly all of its revenue, is performing well, with expectations to further monetize Threads and WhatsApp, including expanding ads on Threads and introducing paid messaging in WhatsApp, which is currently generating an annual revenue run rate of over $2 billion [3]. Instagram Reels and Engagement - Instagram Reels is gaining traction, with total watch time increasing by 30% year-over-year in the U.S. in Q4, and the company plans to enhance engagement through additional language support for video dubbing [2]. Financial Projections and Expenses - For 2026, Meta anticipates total expenses between $162 billion and $169 billion, a 42% increase from the previous year, with capital expenditures expected to rise significantly to between $115 billion and $135 billion [8][9]. Stock Performance and Analyst Outlook - Following positive Q4 earnings, several analysts have raised their price targets for META stock, with Bank of America increasing its target from $810 to $885 and Jefferies projecting a rise to $1,000 [11][12]. Profitability Challenges - Despite revenue growth of over 20% in the past two years, Meta's profitability remains under pressure, with 2026 per-share earnings expected to be similar to 2025 [13]. Future Expectations - The forward price-to-earnings (P/E) multiple for META stock is 24, which is considered reasonable given the company's growth potential, with expectations for improved profitability in 2027 as Reality Labs losses are projected to narrow [14].