Meta, which increased its unprecedented AI spending, why does Wall Street say now is an unprecedented undervalued opportunity?

▲ Meta Platforms/Source: X ©

Global big tech company Meta Platforms (META) received optimistic investment opinions from Wall Street analysts, who believe its stock is excessively undervalued compared to its strong monetization capabilities in the artificial intelligence market. U.S. asset management firm Truist Securities reaffirmed its 'buy' rating for Meta and maintained its price target at $840, which implies an upside potential of approximately 37% from the current stock price of $612.

According to crypto media outlet Finbold on July 7 (local time), Meta remains significantly undervalued, owing to its vast global user base and its ability to monetize AI within its ecosystem. The outlet highlighted Meta's more than 3.5 billion daily users, over 200 million small and medium-sized businesses, and over 10 million advertisers, analyzing that this unique distribution potential creates a strong barrier to entry that competitors cannot easily replicate. In particular, it noted that Meta's AI strategy is not merely focused on a competition of model quality, but rather on generating substantial revenue across its core platforms, including Instagram, WhatsApp, and Messenger.

The overall consensus on Wall Street also exhibits a very bullish stance on Meta. According to financial data platform TipRanks, Meta maintains a 'strong buy' rating, with 33 'buy', 5 'hold', and 0 'sell' recommendations out of 38 analyst reports. The average 12-month price target from experts is estimated at $818.23, approximately 33.6% higher than the current price, with a forecast range from a low of $622.25 to a high of $1,015.

Recently, Meta's stock price has been trading above the $600 mark, driven by concerns over aggressive spending expansion on AI infrastructure coupled with strong advertising revenue growth. Meta achieved robust performance in the first quarter of this year, with revenues of $56.3 billion, a 33% increase year-over-year. Nevertheless, the stock has undergone an adjustment of approximately 9% to 12% since 2026 due to caution regarding large-scale capital expenditures.

In fact, Meta has raised its annual capital expenditure guidance for 2026 to between $125 billion and $145 billion to support the construction of new data centers, including the Meta AI Research Lab, and other AI initiatives. While this large-scale investment expansion has somewhat dampened short-term investor sentiment, management is confident in operating profit growth this year and has projected robust growth with Q2 revenue guidance of $58 billion to $61 billion.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*