Tue Jan 20 10:40:00 UTC 2026: # Meta Platforms’ Investment Strategy Under Scrutiny Despite Analyst Support
The Story
Meta Platforms, Inc. (NASDAQ:META) is facing scrutiny despite analyst support, as its stock performance remains lackluster over the past year. The recent focus stems from the company’s fiscal third-quarter earnings report, where increased capital expenditure guidance for 2025, reaching $70 billion to $72 billion, raised concerns. Jim Cramer defended Meta’s spending as necessary to protect its social media dominance from competitors like OpenAI. Bank of America reiterated a Buy rating with a price target of $810 per share, following Meta’s agreements with nuclear power companies Oklo, Vistra, and TerraPower. However, the article suggests that other AI stocks may offer more promising returns with less downside risk.
Key Points
- Meta Platforms’ stock has been flat over the past year.
- Increased 2025 capital expenditure guidance to $70 billion – $72 billion is a point of concern.
- Jim Cramer defends the increased spending to protect against OpenAI.
- Bank of America reiterated a Buy rating with a $810 price target after Meta’s deals with nuclear power firms.
- The article suggests alternative AI stocks may be better investments.
Critical Analysis
The juxtaposition of Cramer’s defense and BofA’s continued bullishness against the backdrop of flat stock performance and rising capital expenditure raises important questions about investor confidence in Meta’s long-term strategy. The mention of Meta partnering with nuclear power companies suggests a diversification strategy that could be seen as either innovative or a distraction from core social media business.
Key Takeaways
- Meta’s aggressive investment strategy is generating both support and skepticism.
- Analyst ratings don’t always translate to immediate stock performance.
- Investors are looking for clear returns on investment, especially in the competitive AI landscape.
- Meta’s diversification into areas like nuclear energy is adding complexity to its investment narrative.
Impact Analysis
Meta’s high spending and strategic shifts will likely continue to influence investor sentiment and stock performance. The success of its diversification efforts, and the effectiveness of its AI defense strategy against companies like OpenAI, will be key determinants of its long-term growth and market valuation.
First Piper 