A $25 Billion Reason to Buy Meta Platforms Stock Here

Meta Platforms (META) happens to be one of the social media giants I’m most bullish on. That’s been the case for a while and isn’t likely to change given the company’s embedded near-monopoly on eyeballs that’s clearly turned into an absolutely incredible profit machine for investors.

Looking at the chart above, it’s clear that Meta has some strong near-term momentum behind it. With a surge in profitability expected thanks to the company’s AI ambitions (and its heavy spending packages on poaching top talent in this space), the sky really does appear to be the limit in terms of spending and growth potential as the AI race heats up in the tech sector.

The thing is, I’m not the only one bullish on Meta’s long-term potential, far from it. Let’s dive into a recent analyst note courtesy of Barclays that describes a world in which growth could accelerate in the near to medium term for this name.

For 2026 and 2027, AI-driven efficiency enhancements should lead to a stable (and high) growth rate for Meta. However, analysts at Barclays have specifically called out Meta’s monetization opportunity with its WhatsApp and Threads applications, which the bank thinks could add around $25 billion in revenue to Meta’s balance sheet.

Assuming margins and capital spending stay consistent, this could lead to as much as $9.5 billion in additional profitability for the company. Which, at Meta’s current multiple of around 27 times trailing earnings, would imply another $260 billion or more in market capitalization added over the course of the next year or so.

This boost in advertising revenue and ability to more effectively monetize its core platforms as a whole is certainly enticing for investors looking for a reason to buy this stock here. I’m of the view that Meta’s valuation isn’t overly onerous, and investors are right to probably take the middle path and assume growth stays stable over the next year. However, if the market is wrong and Meta can indeed see its profitability continue to grow faster than its revenue, this multiple could turn out in hindsight to be too cheap.

We’ll have to see if the monetization potential these Barclays analysts point out will materialize. But there are certainly models for such a monetization growth cycle, such as what we saw with Reels in the past, and Meta is a social media giant that’s more than perfected the art of turning attention into dollars. Until the model changes and we put down our phones, Meta is a likely winner from this race to capture attention share.

Wall Street analysts clearly remain very bullish on Meta’s near- and medium-term prospects, with the consensus price target on this stock now at $870 per share. That implies around 16% upside from here, with the most bullish analyst suggesting META stock could surge around 25% from current levels to fresh highs in the coming months.

I think Susquehanna’s view that some amount of top- and bottom-line growth acceleration could both push META stock higher, as well as the consensus price target, over the course of the coming months. It’s worth noting that META stock has surged off its April lows and is now hovering near all-time highs. A lot of growth between now and a year from now will need to materialize in order for today’s price to be justified. The thing is, many on Wall Street (and on Main Street) may be more concerned with missing out on another potential growth surge and want to get ahead of these catalysts Barclays points out.

Fair enough.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com