META stock closed Friday at $567 after it beat market expectations for the Q3 earnings results. The tech giant reported a third-quarter profit of $6.03 per share, compared with estimates of $5.25. However, despite the positive earnings call, the stock plummeted 5%, causing distress in the market. Read here for more details about the crash and how low it could fall in Q4 this year.
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The stock appeared underwhelming as investors expressed concerns about its increased spending in the artificial intelligence (AI) sector. Mark Zuckerberg had previously invested billions in the development of the Metaverse only to pull back a year later. The pullback led to massive job cuts, and billions of investments went down the drain. META stock also plummeted back then, and the same concerns are now seen in the AI sector.
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Nonetheless, financial analysts at Cantor Fitzgerald estimated that META stock would gain from the AI sector next year and not lose billions in investment. The research analysts have an ‘Overweight’ rating for the tech giant, estimating that 2025 earnings will be $21.84 per share. That’s more than three times the Q3 earnings call of 2024.
New Price Target for META Stock
The analysts predict that META stock could reach a high of $670 in 2025, indicating a rally in the charts. That’s an uptick and return on investment (ROI) of approximately 18% from its current price of $567. Therefore, if the forecast is accurate, an investment of $1,000 could turn into $1,180.
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The forecast puts META stock in the ‘buy’ zone as the prospects for 2025 look promising. The tech giant is competing with other multinational corporations in the AI sector, including Google, Microsoft, and Nvidia, among others. The AI race will heat up next year, and only the ones delivering value will survive in the markets. Even Apple Inc. launched AI in the latest iPhone 16 models that hit the global markets in September.
