Meta Platforms’ (NASDAQ: META), which is a tech giant, has been steadily rising in the extended hours following its impressive Q4 results. The company easily surpassed Street expectations on the strength of AI.
Analysts had predicted $8.23 per share on $58.59 billion in revenue. The multinational achieved $8.88, which is well over the $8.23 analysts expected.
Meta Platforms is currently down over 12% from its 52-week peak.
What should you do with Meta Stock after the Q4 results?
Meta Platforms reported that the number of active daily users in its app family was 3.58 billion during the fourth quarter, which is in line with estimates from the Street.
Susan Li, chief financial officer of the company, has guided capital spending to up to $135 Billion, almost double the amount it spent in the previous year. This shows that the AI investment will continue to be aggressive.
Wall Street analysts estimate that such an increase in CAPEX would reduce Meta’s operating profit by about 5.0%.
Brent Thill, a Jefferies senior analyst, believes that “peak pressure” has already been baked into META’s stock after recent weakness.
He recommended to long-term investors that they stick with Nasdaq listed firm because its upside will outweigh the risks by 2026.
What is the potential for META to soar in 2026?
Thill’s latest report explains that while Meta Platforms plans to invest billions in AI, the company has reduced its budget for metaverse, which he deemed a positive sign of cost discipline.
Jefferies analyst agrees that Llama 4’s performance was not as good as its rivals, but says the new AI text and image models due in the first half 2026 are going to change this narrative.
He added that the upcoming products will prove Meta’s investment in AI talent is paying off.
Thill has a “buy’ rating for Meta shares, with a $910 price target – which indicates a potential gain of approximately 30% over current prices.
Meta Platforms offers upbeat advice today
META’s stock is attractive for long-term investment, not only because of the company’s solid forecast for its current quarterly. It expects to reach $55 billion in sales for Q1, which is well ahead of Facebook’s $51.41 and Telegram’s $51.41 billion.
Nasdaq listed firm uses AI to boost its engagement and optimize the performance of ads across all platforms. It’s trading at a significant discount to Alphabet Inc.
Meta shares currently trade at about 21x earnings, compared to more than 28x in the case of GOOGL. Brent Thill, a Jefferies analyst told clients that this is a larger discount than the “historical norms”.
He concluded that the “top-line strengths and continued gains in efficiency” of the company can compensate for the rise in operating expenses. This makes the stock worthwhile to own in 2026.
The post Meta Stock dubbed Cheap by “Historical norms” as Q4 Earnings Beat Estimates may be updated as new information unfolds.
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