Key Insights:
- Meta stock price could be on the verge of a strong bullish breakout.
- Mark Zuckerberg has pledged more AI investment in the coming years.
- Technical analysis points to more upside, potentially to $850.
Meta stock price has been in a strong uptrend this year, helped by its strong revenue and profitability growth, and its growing artificial intelligence tailwinds. The stock was trading at $748 on Friday, up 55% from the lowest level this year.
Meta Platforms Plans to Boost its AI Investments
American hyperscalers, including Microsoft, Meta Platforms, and Amazon, spend billions of dollars on AI infrastructure. Meta Platforms, the parent company of Instagram, Facebook, and WhatsApp, has already committed to spending $70 billion this year and $100 billion in 2026.
In a statement at the White House, Mark Zuckerberg, Meta’s CEO, said that the company would spend $600 billion in AI infrastructure in the United States by 2028.
Using the existing guidance, and to achieve that metric, it will need to boost its pending to $200 bilion in 2027 and $300 billion in 2027 and 2028. However, odds are that this will not happen as Zuckerberg was talking to please Donald Trump, who is known to love big number.
The company believes this investment will enhance its presence in the artificial intelligence industry, which it views as its future.
Still, the main challenge for Meta Platforms is that it still lags behind other companies in the AI space. Data shows that OpenAI’s ChatGPT has the biggest market share in the space, and is followed by Google Gemini, Perplexity, Anthropic’s Claude, and Elon Musk’s Grok.
Meta AI is not featured in the rankings, despite its chatbots being installed in its apps like WhatsApp and Facebook.
The rising spending will affect its profitability if it achieves what Zuckerberg promised.
Also, Meta is known for making some big bets whose results did not materialize. For example, it spent millions of dollars building a failed cryptocurrency project. It also spent a lot of money on the metaverse and failed. As such, if its investments in AI fail, it could become the costliest bet ever.
Meta Growth is Accelerating
Meanwhile, the most recent results show that its business is growing even as it faces substantial competition from companies like TikTok and RedNote. Also, its flagship products, like Facebook and Instagram, are struggling to acquire young users. Meta has also struggled to monetize its WhatsApp business.
The numbers showed that its advertising revenue rose to $46.56 billion in the second quarter, a big increase from the $38 billion it made last year. Its total revenue rose to $47.5 billion from $39 billion last year.
Most importantly, its revenue is growing substantially despite its recent data center spending. Its net income rose to $18.3 billion from $13.4 billion in the same period in Q2’24.
Wall Street analysts are optimistic that Meta will continue its double digit returns in the long term. The average revenue estimate for the current quarter is $49.27 billion, up by 21% from last year.
Analysts also see the fourth-quarter revenue being $57 billion, up by 17.8% YoY, bringing the full-year figure to $196 billion. Meta has a long history of being conservative in its guidance.
Meta Stock Price Technical Analysis
The daily timeframe chart shows that the Meta share price has staged a strong comeback in the past few months, moving from $480 in April to $745 today. It has recently pulled back by almost 6% from its highest point this year as the rally took a breather.
The stock has formed a descending channel, which is part of the bullish flag pattern. It has also done a break-and-retest pattern by moving to $740, the highest point in February and June. A break-and-retest is one of the most common bullish continuation signs.
Therefore, the most likely scenario is where it continues rising as bulls target the year-to-date high of $796. A move above that level will signal more gains, potentially to $850 and above. A drop below the support at $700 will invalidate the bullish Meta stock forecast.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
