Cantor Fitzgerald Lowers Meta Price Target to $720

Cantor Fitzgerald analyst Deepak Mathivanan lowered the price target on Meta Platforms Inc.

(NASDAQ: META) to $720 (from $830) while maintaining an Overweight rating.

“On the 3Q25 earnings call, META guided FY26E operating expense growth to accelerate significantly vs. 2025, due to depreciation, infrastructure operating costs, and recently hired AI talent.

Additionally, the company noted cloud computing expenses as an incremental driver of FY26E opex growth.

While META has historically used cloud partners in some capacity, the company’s recent agreements with four cloud vendors (GOOGL, ORCL, CRWV, and NBIS) totaling $40B+ is a sizable increase in future commitments (Exhibits 1-2).

Although specific annual disclosures are sparse, based on details from press reports, public company filings, etc., we calculate that META is likely to incur ~$4B (or 3-pts y/y) in incremental costs in FY26E (Exhibit 3).

Admittedly, a lot of payments are likely tied to capacity brought online by partners, which introduces a layer of uncertainty and could delay expenses into the future but we expect some incremental headwinds in 2026E.

As such, we currently forecast total opex of $152B (+30% y/y) for FY26E. We have lowered our FY26E EPS by 2% and our revised PT is $720 (vs $830 previously).”

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