Meta Platforms, Inc. is highlighted as one of the AI Stocks in Focus on Wall Street. KeyBanc analyst Justin Patterson lowered the price target to $835.00 while maintaining an Overweight rating, expecting Meta to benefit from AI product cycles in 2026.

KeyBanc sees revenue forecasts for both Meta and Alphabet remaining ahead of consensus estimates. While Alphabet’s AI upside is reflected in its valuation, Meta’s shares price in investment and ROI concerns, leading to a wider P/E discount to Alphabet since 2002.

Despite concerns about spending levels, KeyBanc anticipates product momentum in the spring supporting stronger revenue growth into 2027. The firm’s own model projects $157 billion in operating expenses and $120 billion in capital expenditures for Meta.

While acknowledging Meta’s investment potential, Keybanc believes other AI stocks offer greater upside potential with less downside risk. For insights on undervalued AI stocks, check out their report on the best short-term AI stock.

Read more at Yahoo Finance: AI Cycles Support Long-Term View on META Despite Near-Term Pressure