Wedbush Lowers Meta Price Target to $595

Wedbush analyst Ygal Arounian lowered the price target on Meta Platforms Inc.

(NASDAQ: META) to $595 (from $671) while maintaining a Neutral rating.

“While Meta only slightly raised 2026 capex guidance, and didn’t commit to 2027, revenue was only slightly ahead in 2Q, 3Q revenue guidance was slightly below at the mid-point (and continued deceleration), enough for investors to continue to press on the capex ROIC debate.

Management did spend time highlighting opportunities it sees from its products to monetize on multiple fronts (aside from continued improvements in the core ad product, which are already contributing).

This included hints at selling excess compute capacity, although management also noted that it doesn’t really have excess compute in 26-27 and looks to strike a balance on leveraging for internal product development and near-term monetization.

Underlying advertising demand did stay strong, with advertising accelerating and both ad impressions (+14%) and price per ad (+12%) positive.

While there are some real strategic efforts that can lead to better monetization over time, our view remains that Meta is early in most of those efforts.

We expect continued strong growth in capex spend to build these out, so a longer-term period for ROIC on that spend, and while the ad business is healthy, it is also decelerating.

We see risk/reward as balanced and stay on the sidelines. We maintain our Neutral rating; our PT moves to $595 from $671.”

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