Meta’s Recent Pullback Creates an Attractive Buying Opportunity

The post Meta’s Recent Pullback Creates an Attractive Buying Opportunity appeared first on 24/7 Wall St..

I am opening with the verdict because the gap between where Meta Platforms (NASDAQ:META) trades today and where our model says it should trade is too wide to bury.

After a punishing six months for the stock, our 24/7 Wall St. price target for Meta is $837.78, implying 47.61% upside from $567.58. The recommendation is buy, with a confidence level of 90%. Earnings power is doing the work in this number.

24/7 Wall St. Price Target Summary

A Stock Trading Like the AI Story Broke

Meta has lost 13.87% year to date and 18.33% over the past year, leaving shares closer to the 52-week low of $519.78 than the high of $793.65. The 14-day RSI sits at 39.43, firmly in oversold territory. The selloff is a valuation reset.

In Q1 2026, Meta delivered EPS of $10.44 against a $6.6587 estimate, a 56.79% beat, on revenue of $56.31 billion (up 33.08% YoY). Ad impressions rose 19% YoY and price per ad climbed 12%. What spooked the market was capex: the FY2026 budget was raised to $125 to $145 billion.

How We Calculated $837.78

The 24/7 Wall St. price target blends a trailing P/E anchor, a forward P/E anchor, and the Wall Street consensus target, then applies our proprietary 247Factor.

The forward P/E component, built on a forward EPS of $41.13 and an implied multiple of 17x, generates a forward-based price of $784.73. Layering the analyst consensus of $827.32 produces a pre-adjustment weighted price of $754.08.

The 247Factor multiplier of 1.111 reflects 62.4% YoY earnings growth, an 89% bullish analyst skew, and Communication Services sector momentum, partially offset by a beta of 1.229 and a 50% dampening applied to mega-caps above $1 trillion.

The Case for $869 or Higher

The bull case rests on three pillars. First, Wall Street is firmly on side: 49 Buy and 8 Strong Buy ratings against zero Sell ratings, with a consensus target of $827.32.

Second, the ad engine is humming. Family daily active people reached 3.56 billion, and Q2 revenue guidance of $58 to $61 billion implies continued acceleration.

Third, the AI bet is shifting from cost to product. Mark Zuckerberg called Q1 a “milestone quarter” with the first model from Meta Superintelligence Labs. Goldman Sachs notes that the five largest hyperscalers (Meta included) drive roughly 27% of S&P 500 capex. Our bull scenario lifts the 12-month price to $869.16.

What Could Go Wrong

Reality Labs posted a $4.03 billion operating loss in Q1, and total expenses grew 35% YoY. Bears argue the raised capex ceiling pressures free cash flow, and youth-related litigation in 2026 carries unquantified liability.

Bulls counter that the expense surge is investment in future capacity. Operating income still grew 30.29% YoY, and management still expects FY2026 operating income above 2025 levels.

Polymarket traders are pricing in a near-term grind: month-end probability mass for June 2026 clusters between $520 and $560. If multiples compress to 15x on the $41.13 forward EPS, the bear scenario lands near $726.79, still above the current price.

The Setup Into Q2 Earnings

The 24/7 Wall St. price target of $837.78 with 90% confidence rests on a forward P/E near 19x against an estimate base that has produced five consecutive beats.

The bullish thesis holds for investors who can stomach volatility around the July 29, 2026 earnings report. The thesis weakens if Q2 guidance signals operating margin compression below 35% or if capex drifts above $145 billion. On balance, oversold technicals plus reaccelerating earnings support the constructive case.

Looking further out, our model projects Meta along the base-case trajectory toward a 2031 value of $1,661.42. These projections assume Meta continues to monetize its ad surface, contains Reality Labs losses, and executes its AI capex plan. Significant upside or downside could come from superintelligence productization or regulatory action.

The post Meta’s Recent Pullback Creates an Attractive Buying Opportunity appeared first on 24/7 Wall St..