Meta (META.US) Q2 financial report receives cheers from Wall Street collectively! Major investment banks urgently raise target prices.

Notice that Meta's explosive quarterly performance on the Meta platform (META.US) has won cheers from Wall Street. After the impressive financial report was released, selling analysts who were already bullish on the stock urgently raised their earnings forecasts and target stock prices. Wells Fargo & Company analyst Ken Gawrelski pointed out that Meta brought "far beyond expected comprehensive surprises", including higher revenue and earnings per share, as well as "2026 operating expenses/capital expenditure forward-looking data significantly exceeding expectations". He gave Meta a "hold" rating, raised the target price from $783 to $811, and provided an optimistic scenario target price of $981, believing that "the continued strong contributions of Reels short videos, Advantage+ advertising platform, and advertising pricing improvements will drive the stock price upward". He added, "Strong growth prospects offset investment pressures, driving investors to moderately raise their earnings expectations for 2026/2027". Morgan Stanley analyst Brian Nowak raised the target price from $750 to $850 significantly and provided a bullish scenario valuation of $1100, believing that "AI investments will increase user engagement and spur new products/tools, thereby supporting excess advertising monetization and revenue growth". Nowak emphasized, "The key takeaway is that we see higher short-term (1-3 years) profitability and a long list of optional paths for driving continued growth in core business (improvements in user engagement and/or monetization, content creation tools, Meta AI, search, business agents, devices, etc.) or bringing longer-term growth through super intelligent/generated AI. JPMorgan analyst Doug Anmuth raised the target price from $795 to $875, specifically mentioning capital expenditures, that although the 2025 capital expenditure guidance "remains at $72 billion, the company stated that to achieve the 'universal super intelligence' vision, capital expenditures in 2026 could reach around $100 billion". Anmuth said, "Impressively, despite the challenges of the Llama 4 model release and major adjustments to the AI team, Meta's core advertising business remains strong, with advertising impressions accelerating significantly to 11%. In addition, we are optimistic about Meta's business opportunities in the AI field - advertising, user interaction, commercial messages, Meta AI, and AI devices - remaining intact. Jefferies Financial Group Inc. analyst Brent Thill reminded investors to pay attention to: possible limitations of short-term free cash flow due to increased capital expenditure in 2026, higher operating expenses in 2026 potentially squeezing operating profit margin, and challenges faced in the fourth quarter due to a higher base. However, he also maintained a bullish stance, raising the target price from $845 to $950 and giving an optimistic target price of $1126, believing that "Meta's positioning in the future decade will be advantageous due to its virtual reality and metaverse layout", while the monetization speed of Messenger and WhatsApp is faster than expected, and Instagram's new features also increase user stickiness.