Meta Expands AI Investment: Shares Rises 6% Last Week

Key Stats for META Stock

• Past-Week Performance: 6%
• 52-Week Range: $480 to $796
• Valuation Model Target Price: $971
• Implied Upside: 45% over 2.9 years

Before reacting to Meta’s AI-driven rally, check whether a 73% capex increase is already reflected in the current valuation using TIKR’s model for free →

What Happened to META Stock?

Meta Platforms Inc. (META) stock rose 6% and traded near $669 last week, holding within a consolidation range as investors balanced product initiatives against escalating regulatory scrutiny.

Last week, the UK Gambling Commission criticized Meta over illegal casino ads, as Britain also launched a consultation on children’s social media use.

Separately, on January 21 at Davos, CTO Andrew Bosworth said Superintelligence Labs delivered internal AI models, while Meta paused teen access to AI characters on January 24.

Market participants appeared to emphasize policy and compliance overhangs alongside AI roadmap progress, limiting aggressive repricing without new advertising or margin disclosures.

Meanwhile, last January 23, filings reported COO Javier Olivan’s share sale and an initial beneficial ownership statement for Dina H. Powell which reflects routine governance disclosures.

Just this Thursday, Meta paired its quarterly results with disclosure of a roughly 73% increase in planned annual capital expenditures.

Overall, Meta disclosed no revisions to guidance, operating strategy, or demand outlook during the period, leaving trading aligned with expectations shaped by regulation headlines.

Meta surged on upbeat revenue guidance, but does the stock still depend on flawless AI monetization? Stress-test the assumptions on TIKR for free →

Is META Stock Fairly Valued Right Now?

Under the valuation model shown, the stock is modeled using:

• Revenue Growth: 17.5%
• Operating Margins: 15.9%
• Exit P/E Multiple: 23x

Is Meta Platforms Stock Undervalued?

Under the valuation model realized through 2028, Meta Platforms stock depends on revenue growth, margin durability, and exit multiple assumptions holding.

The model assumes 17.5% revenue growth, 35.9% operating margins, and a 23.0x exit P/E multiple through the forecast period.

Based on these inputs, the model estimates a $970.61 target price, implying 45.1% total upside and 13.6% annualized returns.

Execution depends on advertising scale, AI-driven engagement improvements, disciplined capital spending, and sustained monetization across Meta’s core platforms.

As a result, Meta Platforms stock reflects execution risk tied to AI investment returns and regulatory pressures rather than valuation optimism alone.

With Meta forecasting accelerating revenue and sharply higher expenses, explore whether execution or optimism drives the upside on TIKR for free →

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