Wall Street Cuts Meta Price Targets Amid AI Spending Concerns

Meta Platforms Inc. faced a sharp selloff after signaling aggressive AI investment plans through 2026, triggering widespread price target reductions from Wall Street analysts. While CEO Mark Zuckerberg framed the spending as essential to meet AI demand, the market reacted with skepticism about cost discipline.

BofA and TD Cowen both slashed targets to $810 while maintaining Buy ratings, with KeyBanc's top-rated analyst Justin Patterson trimming his outlook to $875. The downward revisions swept across major firms including Goldman Sachs, Citi, and Morgan Stanley - though most retained positive ratings, suggesting tempered expectations rather than outright bearishness.

Wedbush's Scott Devitt emerged as a notable contrarian, holding firm at $920. The divergence highlights the central debate: whether Meta's AI-powered ad tools and infrastructure investments will ultimately drive revenue growth sufficient to justify the spending surge.