Menlo Park, California-based Meta Platforms, Inc. (META) operates as a social technology company. The company develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables. With a market cap of $1.5 trillion, Meta is also involved in advertisements, augmented, and virtual reality. The social media giant is expected to announce its fiscal second-quarter earnings for 2026 in the near term.
Ahead of the event, analysts expect META to report a profit of $7.09 per share on a diluted basis, down marginally from $7.14 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect META to report EPS of $29.46, down marginally from $29.69 in fiscal 2025. However, its EPS is expected to rise 19.4% year over year to $35.17 in fiscal 2027.
META stock has notably underperformed the S&P 500 Index’s ($SPX) 19.2% gains over the past 52 weeks, with shares down 18.3% during this period. Similarly, it underperformed the State Street Communication Services Select Sector SPDR ETF’s (XLC) 2% returns over the same time frame.
META’s underperformance stemmed from investor anxiety over massive AI infrastructure investments and when those outlays will pay off. In response, Meta is pivoting to monetize idle GPU capacity by offering compute directly to developers, turning fixed costs into a scalable revenue stream. At the same time, regulatory challenges are mounting, with Meta contesting New Mexico’s $3.7 billion proposal on teen mental health and social media addiction. Together, these factors have raised concerns about margin pressure and how Meta will finance its AI ambitions.
Analysts’ consensus opinion on META stock is bullish, with a “Strong Buy” rating overall. Out of 53 analysts covering the stock, 42 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” eight give a “Hold,” and one recommends a “Strong Sell.” META’s average analyst price target is $823.30, indicating a notable potential upside of 41.2% from the current levels.
