Barclays Lowers Meta Price Target to $770

Barclays analyst Ross Sandler lowered the price target on Meta Platforms Inc.

(NASDAQ: META) to $770 (from $810) while maintaining an Overweight rating.

“META reported revenue that was 4% above consensus and guided towards even heavier investments.

The company is behind on AI but the new team is well positioned to bring META back to the frontier, albeit with significant cost.

Noted above, the increased capital intensity wipes out most FCF near term, but this isn’t the permanent state; it’s more of a temporary catch up.

The high margin ad revenue is performing best-in-industry, so it pays for most of the MSL burn.

While the pedigree of the new AI team is very good and they likely deliver vastly improved new models and products in ’26, management is once again asking the investment community to patiently look across the near-term FCF implosion to the other side (which may be a few years out).

Like previous investment cycles with increased competition, META shares likely remain a bit volatile here, but work higher over the longer term.”

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