Is Meta Stock a Buy Right Now? BofA Thinks So — But There’s a Catch

TLDR

• Bank of America reiterated a Buy rating and $835 price target on META
• BofA says two key factors could re-rate the stock: frontier AI model progress and scaled adoption of new AI products
• META opened at $570.98 on Thursday, well below its 52-week high of $796.25
• Meta reported Q1 EPS of $10.44, beating estimates of $6.67, with revenue up 33.1% year-over-year
• Consensus analyst target sits at $840.60, with 35 analysts rating it a Buy

Bank of America has reiterated its Buy rating on Meta Platforms (META) with an $835 price target, saying the stock could be heading for a re-rating — but two things need to happen first.

Meta Platforms, Inc., META

META opened at $570.98 on Thursday, sitting well below its 52-week high of $796.25. The stock has underperformed since management flagged a big jump in 2026 operating and capital expenditure, and investors have been skeptical about what they’ll actually get back from all that AI spending.

BofA analyst Justin Post says those concerns could ease — but only if Meta proves it can deliver on two fronts: frontier-level AI model development over the next nine months, and scaled adoption of its new AI products.

AI Already Working in Ads

Post argues AI is already pulling its weight inside Meta’s core advertising business. Better content recommendations and sharper ad targeting are driving more user engagement and higher ad spend. He also flagged the integration of Muse Spark technology as a potential further boost.

Beyond ads, BofA pointed to AI subscriptions, enterprise offerings, and business agents as emerging revenue streams worth watching. The bank expects more clarity on AI monetization over the next two earnings reports as products move from concept to release.

Truist has separately flagged a potential new subscription business that could add around $20 billion in revenue over time. Meta also recently signed a data-center deal with Reliance in India, expanding its AI infrastructure footprint.

Strong Earnings, But Concerns Remain

Meta’s last earnings report was a beat. The company posted Q1 EPS of $10.44, smashing the consensus estimate of $6.67. Revenue came in at $56.31 billion, up 33.1% year-over-year, against expectations of $55.56 billion.

The company declared a quarterly dividend of $0.525 per share, payable June 25, with a record date of June 15.

On the institutional side, 79.91% of META is held by institutions. Headwater Capital increased its position by 294.7% in Q1, picking up 112,000 additional shares. Verus Capital Partners raised its stake by 12.9% in Q4.

Not everything is pointing up. CFO Susan Li sold $5.6 million worth of stock in May under a pre-arranged trading plan. Insider Curtis Mahoney also trimmed his position. Over the last 90 days, insiders sold over 41,000 shares worth roughly $25.6 million.

There are also regulatory headwinds. The EU ordered Meta to allow rival AI chatbots access to WhatsApp. A court denied Meta a new trial in the youth social-media addiction case. And a reported AI bug that allowed hackers to access Instagram accounts added more noise.

Analyst Targets

The consensus analyst target sits at $840.60, with 35 Buy ratings, 9 Hold ratings, and just one Sell. Barclays raised its target to $830, Stifel sits at $780, and Wolfe Research trimmed its target to $800 but kept an Outperform rating. Benchmark and Arete Research both initiated coverage with Buy ratings in early June.

Meta’s market cap stands at $1.44 trillion, with a P/E of 20.76 and a PEG ratio of 1.04.

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