Canaccord Reiterates Buy on Meta, $930 PT

Canaccord analyst Maria Ripps reiterated a Buy rating and $930 price target on Meta Platforms Inc. (NASDAQ: META).

“Meta reported solid Q2 results relative to expectations, with total revenue coming in ~1% above consensus and near the high end of guidance, although profitability was weighed down by legal and severance costs.

The impact of AI remained visible across the business, with AI-led improvements to ads ranking driving a mid-teens conversion improvement on FB, while ranking and recommendation gains drove double-digit y/y growth in global time spent on Instagram.

Management called out healthy scaling laws from continuously pre-training a large-scale model with recommendations data, an encouraging early signal for the next generation of its ranking systems.

Beyond the core, the company laid out an increasingly defined enterprise opportunity spanning its new model API, business agents, and potentially selling compute directly, with CEO Mark Zuckerberg noting that Meta is “getting a lot of offers for compute at a significant premium over what we paid for it.” On capacity, management indicated its plans are geared toward maximizing 2026 and 2027 compute while laying data center foundations to grow in 2028 and beyond, and it expects industry-wide capacity to remain in short supply.

Q3 revenue guidance came in slightly below consensus at the midpoint, the FY26 expense outlook was raised at the low end to absorb the legal charge, and the FY26 CapEx range was narrowed upward.

Shares traded down after hours, extending a weak run into the print, suggesting investors remain focused on the spending trajectory even as the core business continues to see strong momentum.

With AI execution intact across the platform and new revenue streams beginning to take shape, we see the market’s focus on spend and a softer near-term guide as an entry point rather than a change in our thesis, and maintain our BUY rating and PT.”

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