Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks Analysts Are Tracking Closely. On July 21, Morgan Stanley analyst Brian Nowak raised the price target on the stock to $750.00 (from $650.00) while keeping an “Overweight” rating. The rating affirmation comes as the firm increased its estimates across the internet space, reflecting on a favorable macro environment and lower China tariffs.
The firm also updated its valuation methodologies to mid-year 2026. It believes that revenue growth will pick up at Meta. In particular, it believes that the company’s core growth algorithm of continuously improving GPU-enabled machine learning will drive higher engagement and monetization.
Morgan Stanley is of the view that two factors will be playing a critical role for Meta’s performance in the second half of 2025. First, the company needs to give the market the confidence that it can achieve at least $30 of 2026 earnings per share. Second, its next-generation Llama models should flaunt potential reasoning capabilities.
Meta App 3D sign
Meta’s earnings are scheduled for July 30th, and investors will be watching closely. Morgan Stanley has also emphasized how further generative AI productization is important as it will help investors realize the return on investment capital from Meta’s recent hiring activities and capital expenditure investments.
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Disclosure: None.
