Meta Platforms Price Target Trimmed by Wells Fargo

Wells Fargo trimmed its price target on Meta Platforms (NASDAQ:META | META Price Prediction) to $765 from $856 while maintaining an Overweight rating ahead of quarterly results. The cut acknowledges near-term macro uncertainty, but the firm’s core thesis remains intact: risk/reward looks attractive for investors willing to hold through the noise heading into earnings.

So far this year, shares of the Magnificent Seven company have lost 12.63%, dragging their one-year loss down to 2.68%.

The Analyst’s Case

Wells Fargo’s revised target reflects a more cautious macro backdrop, but the firm’s revenue outlook stays constructive. Wells Fargo’s Q1 estimate sits above consensus, and the firm expects Q2 guidance to bracket consensus, assuming no further macro deterioration. The key qualifier: patience is required. The Overweight rating signals the firm views the current pullback as an entry opportunity rather than a structural breakdown in the thesis.

Company Snapshot

Meta reported a strong finish to fiscal 2025. Q4 2025 EPS came in at $8.88 against an $8.22 estimate, while revenue of $59.89 billion beat the $58.48 billion consensus. For the full year, revenue reached $200.97 billion and operating income hit $83.28 billion. The advertising engine continues to drive the business, with ad impressions up 18% year-over-year (YoY) and average price per ad up 6%. The company’s family of apps reached 3.58 billion daily active people, a 7% gain YoY.

The investment story for 2026 centers on a massive capital commitment. Management guided for full-year capital expenditures of $115 to $135 billion, a dramatic step up from prior levels, directed largely at AI infrastructure through Meta Superintelligence Labs. Management expects 2026 operating income to exceed 2025 levels despite the spending ramp.

Why the Move Matters Now

Meta stock has pulled back sharply in 2026. Shares are down 12% year-to-date and currently trade around $579, well below both the 50-day moving average of $640.41 and the 200-day moving average of $685.69. Against that backdrop, Wells Fargo’s revised $765 target still represents meaningful upside from current levels. The broader analyst community remains firmly bullish: 62 analysts rate Meta a Buy or Strong Buy, with a consensus price target of $861.76. The stock trades at a forward P/E of 19x, a relatively modest multiple given the scale of Meta’s advertising franchise.

Q1 2026 earnings are expected on April 28, 2026, giving investors a near-term catalyst within weeks. Meta has beaten earnings estimates in 7 of the last 8 quarters, though post-earnings price action has been mixed, with the stock often fading in the weeks following results.

What It Means for Your Portfolio

Wells Fargo’s price target cut reflects a recalibration of macro assumptions while keeping the fundamental thesis intact. The firm’s Overweight rating and above-consensus revenue estimates suggest the fundamental case for Meta remains intact. The key risks to watch include the ongoing Reality Labs operating losses, EU regulatory headwinds around personalized advertising and whether the aggressive CapEx cycle translates into measurable AI-driven revenue growth.

The setup heading into April 28 earnings carries meaningful data points: a stock trading well below moving averages, a firm maintaining an Overweight rating with above-consensus revenue estimates, and near-term volatility that could cut in either direction depending on Q1 results and Q2 guidance.