Meta Stock Slump Sparks Bullish Bet as AI Investments Draw Focus

Meta Platforms (META) shares have tumbled 19% since its October earnings report revealed margin compression and heightened AI infrastructure spending. Yet Wedbush Securities sees opportunity in the selloff, adding the stock to its 'Best Ideas' list with a $920 price target—implying 50% upside.

The firm defends Meta's aggressive AI capital expenditures, citing tangible improvements in ad targeting and recommendation algorithms. 'At this point in the cycle, we think the spending has been justified,' analysts noted, highlighting early returns on AI initiatives that could position Meta as a leader in large-scale model training.

While the market recoils at rising costs, Wedbush's endorsement underscores a growing Wall Street divide: short-term pain versus long-term positioning in the AI arms race. The stock's volatility reflects investor unease over Meta's third capex hike this year, but true believers see a company building tomorrow's competitive moats today.