Stock (Symbol) |
Meta Platforms (META) |
Stock Price |
$640 |
Sector |
| Technology |
Data is as of |
| February 16, 2026 |
Expected to Report |
| April 28 |
Company Description |
 Meta Platforms Inc., formerly Facebook, Inc., builds technologies that help people find communities and grow businesses.
The Company’s products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, wearables, and in-home devices. The Company operates through two segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes augmented and virtual reality-related consumer hardware, software, and content. Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Instagram is a place where people can express themselves through photos, videos, and private messaging, and connect with and shop from their favorite businesses and creators. Messenger is a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices. |
Sharek’s Take |
 Meta Platforms (META) is accelerating investment in AI infrastructure. Last quarter, expenses grew 40% year over year, outpacing 24% revenue growth, with CapEx reaching 37% of revenue. Just recently, Meta Platforms signed a multi-year AI infrastructure partnership with Advanced Micro Devices (AMD), supporting its strategy to build massive AI infrastructure. This gives Meta access to huge amounts of AI computing power, scaling its AI ambitions more effectively and competitively. For 2026, management expects even higher CapEx, though investors remain cautious about the heavy AI spending. For 2026, management expects CapEx growth to be ~$125 billion versus $72 billion in 2025. Part of this spending will go to AI glasses.
Meta Platforms, formerly Facebook, builds applications that enable people to connect and share with friends and family through mobile devices, personal computers, reality headsets, and in-home devices. The company has around 3.5 billion daily users within its Family of Apps. Management has been investing heavily in AI infrastructure, which has boosted ad performance. Meta properties include:
Meta’s stock has been on a wild ride for the past couple of years. The company “bet the farm” on developing a metaverse in 2022. Profits tanked, as did the stock. In 2023, management refocused on its core products and slashed expenses in a year of efficiency. Management cut headcount by 22% during 2023 as profits got back on track. For 2025, the company repurchased $26 billion worth of shares as part of its capital return program. It also distributed dividends worth $5 billion. META is part of the Growth Portfolio and the Focus List. With a P/E of only 22, I think this stock will rally if it delivers 20% profit growth in 2026. |
One Year Chart |
 META stock has been on a wild ride this past year. The recent decline from $750 to $600 was caused by management’s comments about higher CapEx spending.
The Est. LTG is 15% this qtr, up from 13% last qtr. That’s an analyst estimate of what profits could grow over the next 3-5 years, not estimated stock growth. With a P/E of just 22, the stock is a good value. But profit growth just slowed so I don’t anticipate a rally. Qtrly profit Estimates indicate that growth is expected to slow sharply over the next two quarters due to higher spending on AI infrastructure. |
Earnings Table |
 Last quarter, Meta Platforms generated 11% profit growth, and beat estimates of 2%. Revenue increased 24% year on year, surpassing estimates of 20%. Operating Margin declined to 41% from 48% in the year-ago period.
Annual Profit Estimates are down this qtr. For 2026, management expects CapEx growth to be in range of $115 billion to $135 billion, underscoring Meta’s focus on scaling AI infrastructure and data centers. Meta’s CapEx was $72 billion in 2025. Qtrly Profit Estimates are for 3%, 1%, 0%, and -2% in the next 4 qtrs. These numbers look bad, but META has been Beating the Street in a big way. Aside from the planned increase in total expenses, management flagged European regulatory risks and youth-related trials in the US that could weigh on revenues in 2026. Analysts think Meta’s revenue will grow a solid 30% next qtr. |
Fair Value |
 This quarter the stock is $640, giving it a P/E of 22.
My Fair Value P/E is 25. So the shares are 16% undervalued in my opinion as I feel they are worth $740. 2027 Est Fair Value sits at $853 a share, giving the stock upside of 33%. Notice 2026 profits are expected to be lower than 2025’s. |
Bottom Line |
 Meta Platforms’ (META) ten-year chart is ugly. The company got off track for a bit and was throwing money at metaverse spending. Then management focused more on cutting expenses, shareholders rejoiced, and the stock rebounded. Now the company is spending again, and the stock’s down.
Meta has a great business, which gives management the ability to spend on AI to continue to improve the Facebook and Instragram. AI glasses could prove to be a catalyst in the years ahead. META slips from 17th to 19th in the Growth Portfolio Power Rankings. Qtrly profit estimates don’t look good. The stock moves from 14th to 15th in the Focus List Power Rankings. |
Power Rankings |
Growth Stock Portfolio
17 of 28Focus List 15 of 17Conservative Stock Portfolio N/A |
