7 hours ago
1
David Moadel
Wed, May 20, 2026 astatine 10:01 AM CDT 4 min read
Quick Read
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Meta Platforms (META) received a humble terms people chopped from $770 to $765 by Wells Fargo portion maintaining an Overweight rating, arsenic Q1 FY2026 gross reached $56.31B (+33% YoY) and the institution raised full-year capex guidance to $125-$145B owed to rising constituent and information halfway costs.
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Meta Platforms is positioned arsenic a large AI infrastructure beneficiary contempt not selling unreality services, arsenic its monolithic compute investments are driving advertisement gross maturation with impressions up 19% and mean terms per advertisement climbing 12%.
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The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Meta wasn't 1 of them. Get them present FREE.
Wells Fargo expert Ken Gawrelski lowered the firm's terms people connected Meta Platforms (NASDAQ:META) to $765 from $770, portion keeping an Overweight standing connected the shares. The $5 trim is simply a humble calibration that leaves the broader thesis intact connected 1 of the astir intimately watched AI infrastructure names connected Wall Street.
Wells Fargo continues to backmost Meta Platforms (NASDAQ:META) arsenic a beneficiary of improving marketplace assurance successful companies monetizing compute investments straight done unreality business, adjacent though Meta Platforms doesn't merchantability unreality services to extracurricular customers. The steadfast maintains its Overweight standing contempt the humble people reduction.
| META | Meta Platforms | Wells Fargo | Price Target Cut | Overweight | Overweight | $770 | $765 |
The Analyst's Case
Gawrelski's model leans connected accelerating unreality revenues, stable-to-improving margins, and rapidly rising backlogs crossed the AI compute ecosystem. Meta Platforms isn't a cloud-as-a-service vendor similar its hyperscaler peers.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Meta wasn't 1 of them. Get them present FREE.
Yet, Meta Platforms is 1 of the largest spenders connected AI compute globally. Q1 FY2026 raised full-year capex guidance to $125 to $145 billion, up from the anterior range, citing constituent pricing and information halfway costs.
Ad metrics enactment the thesis. Meta Platforms' advertisement impressions roseate 19% twelvemonth implicit twelvemonth and mean terms per advertisement climbed 12%, portion household regular progressive radical reached 3.56 billion.
Company Snapshot
Meta Platforms operates the Family of Apps segment, including Facebook, Instagram, Messenger, WhatsApp, and Threads, alongside the Reality Labs hardware unit. The institution carries a marketplace headdress of $1.53 trillion and trades astatine a P/E ratio of 22x.
Q1 FY2026 delivered gross of $56.31 cardinal for Meta Platforms, up 33% twelvemonth implicit year, and EPS of $10.44. Reality Labs posted an operating nonaccomplishment of $4.03 billion, an ongoing resistance connected consolidated profits.
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