Meta Soars Toward Q2 Earnings: Analysts Raise Targets Amid AI Surge and Ad Strength
Tech optimism fuels META’s rally as Wall Street leans bullish on growth and innovation
Meta Platforms (META), listed on the NASDAQ and part of the communication services sector, surged this week after a wave of analyst upgrades boosted investor confidence ahead of its upcoming second-quarter earnings report on July 30. TD Cowen raised its price target to $800, Wells Fargo to $783, and Roth MKM to $740, citing strong advertising momentum, diminishing geopolitical headwinds, and a renewed focus on artificial intelligence innovation.
Shares of META have skyrocketed over 50% since mid-April, trading around $733 at the time of writing. That rally places it ahead of its peers in the so-called “Magnificent Seven” group of mega-cap tech stocks. Analysts highlight digital ad spending accelerating across Facebook and Instagram platforms, supporting strong Q2 guidance. TD Cowen now expects revenue of $45.4 billion, a 16.1% year-over-year increase, beating consensus estimates by nearly 2%. Earnings per share are projected at $6.08 with operating margins expanding to 39.5%.
A significant driver of investor optimism is Meta’s ambitious push into AI. The company recently announced the creation of its new Superintelligence Lab, bringing on board high-profile names like Alexandr Wang (CEO of Scale AI), Nat Friedman (former GitHub CEO), and Ruoming Pang (ex-Apple AI researcher). This strategic expansion signals a pivot toward advanced enterprise AI products, bolstering Meta’s long-term growth narrative.
Analysts also remain bullish on Meta’s advertising machine. Instagram continues to outperform with stronger pricing and ad impressions, while WhatsApp approaches a major monetization milestone. Oppenheimer raised its target to $775, noting early positive signs in WhatsApp’s Updates tab ad testing and improving revenue projections through 2026, despite short-term AI implementation risks.
While Barclays issued a slightly more cautious tone due to regulatory and macroeconomic concerns, overall analyst sentiment remains overwhelmingly positive. Approximately 86% of analysts currently rate META as a “Buy,” with several price targets stretching into the $900 range. The average price target now hovers around $731, affirming confidence in Meta’s Q2 potential.
Beyond the numbers, Meta’s ecosystem strength remains a key factor. With over 3.4 billion monthly active users across its platforms—including Facebook, Instagram, WhatsApp, and Threads—the company commands a dominant position in global digital communication. Analysts from Loop Capital now project a forward P/E ratio of 30x, reflecting increased investor trust in future earnings growth.
Spending on AI infrastructure is rising sharply. Meta updated its capital expenditure guidance to between $64 billion and $72 billion for 2025. This increase is aimed at expanding capabilities for Business AI tools, smart wearables, and next-gen products, while still managing losses in its Reality Labs division. Advertising revenue, however, continues to more than offset those costs.
Risks remain, including geopolitical tensions, AI delivery timelines, and heightened scrutiny from regulators, especially in Europe and the U.S. Still, the growing consensus is that Meta is evolving far beyond a social media platform into a future-ready AI and digital infrastructure powerhouse—an evolution Wall Street appears ready to bet on.