Meta Platforms (META) stock has dropped 15% due to aggressive spending plans, but Wedbush Securities is bullish, setting a $920 price target, 50% above current levels. Despite concerns about expenses, META has grown 445% in three years and trades 23% below all-time highs, with revenue up 26% YoY.

Meta’s pullback follows strong third-quarter earnings, with operating costs outpacing revenue growth. The company plans higher capital spending next year to invest in AI and data center infrastructure. It also raised 2025 capital expenditure guidance to $70-72 billion and took a $16 billion charge for Trump’s tax legislation.

Wedbush analysts support Meta’s heavy spending, citing AI integration benefits in advertising and content recommendations. They highlight growth in advertising, AI advancements, and new hardware launches as reasons for optimism. Meta’s Superintelligence Labs aim to lead AI development with high talent density.

Meta is front-loading infrastructure for superintelligence breakthroughs, launching a gigawatt-plus data center cluster next year. Personalized experiences across apps drive engagement, with strong results in recommendation systems and video content. AI improvements boost advertising revenue, targeting $60 billion annually.

Meta’s AI strategy focuses on personalized experiences and unifying advertising tools into a single system. Business AI could generate substantial revenue as models improve. Analysts predict sales to double by 2029, with EPS growing by 10% annually. META stock may reach $575 by 2028, analysts recommend “Strong Buy.”

META stock has 45 “Strong Buy” recommendations, with an average price target of $843.94, implying a 40% upside. Aditya Raghunath did not hold positions in mentioned securities. Information is for informational purposes only. Source: Barchart.com.

Read more at Yahoo Finance: META Stock Has Fallen 15% This Month, but Wedbush Says It Can Soar 50% from Here