Analysts maintain bullish ratings on META despite a 91% free cash flow drop driven by $31 billion quarterly capex.
Meta Platforms (NASDAQ:META) trades at $578.85, 26% below Wall Street’s $754.14 average price target, as 55 of 62 analysts rate the stock a Buy. The gap reflects confidence in long-term AI monetization despite near-term pressure.
Q2 2026 earnings missed EPS estimates by 14.42%, ending a six-quarter beat streak. Revenue rose 27.96% year over year to $60.8 billion, but operating margins fell to 31% from 43% due to $2.4 billion in legal charges and $1.2 billion in severance. Capex surged to $31.1 billion, compressing free cash flow by 91%.
Rosenblatt Securities set a Street-high $1,117 target, citing WhatsApp’s agentic AI potential for small businesses. However, rising capex guidance to $145 billion fuels bearish concerns over profitability.