Meta (META) Stock Forecast & Price Target

Meta Platforms demonstrates a strong financial outlook, with projected 4Q25 revenues ranging from $56 billion to $59 billion, representing a year-over-year growth of 19% to 22% and a respectable 18% to 21% when adjusted for foreign exchange. The company has also reported significant improvements in ad performance, with a 14% year-over-year increase in ad impressions and a 10% rise in average ad pricing, alongside an enhanced EBITDA margin that improved over 10 percentage points year-over-year. Despite increased expenses and capital expenditures planned for 2025, Meta's robust user engagement—highlighted by over 3.5 billion daily active users—underscores its strong market position and future growth potential.

Meta Platforms is facing significant financial challenges as free cash flow is projected to decline sharply from $52 billion in 2024 to only $26 billion by 2026 due to a substantial increase in capital expenditures. This reduction in free cash flow is compounded by a marked decrease in shareholder returns, which are down 54% year-over-year in the third quarter of 2025. Additionally, there are growing concerns regarding the potential stagnation or reversal of Facebook's active user base, coupled with competitive pressures from platforms like TikTok, which could further hinder Meta’s ability to achieve returns on its research and development investments.