Analysts cite strong ad revenue growth and valuation gap with peers despite recent earnings miss and legal charges.
Meta Platforms (NASDAQ: META) trades at $556.71, 40% below a $780.93 price target set by analysts, who see undervaluation despite 28% revenue growth in Q2. The stock fell 15.5% year-to-date after missing EPS estimates due to $2.40 billion in legal charges and $1.18 billion in severance costs.
Q2 revenue reached $60.80 billion, beating expectations, while ad revenue grew 27% to $59.36 billion. Analysts note Meta’s P/E of 20 remains above Alphabet’s 16, despite stronger growth, calling the gap overdone. Free cash flow dropped to $784 million, and FY2026 capex guidance narrowed to $130-$145 billion.
Analyst consensus supports a $768.58 target, with 57 buy ratings and no sells, reflecting confidence in Meta’s ad engine recovery and long-term upside.