Piper Sandler elevates Meta shares target, highlights CEO leadership and AI advancements By Investing.com

Despite the positive outlook, the analyst did acknowledge that the first half of 2025 poses a challenging year-over-year comparison for Meta, leading to a slight adjustment in estimates.

Trading at a P/E ratio of 28, Meta appears to be valued above its InvestingPro Fair Value, though the overall assessment remains positive, with the higher price target reflecting confidence in the company’s trajectory. For a comprehensive analysis of Meta’s valuation and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro.

The analyst highlighted that Meta’s earnings results for 2024 significantly exceeded their expectations. This financial performance is particularly noteworthy given the company’s massive $1.55 trillion market capitalization and impressive 81.5% gross profit margins. The company has maintained strong momentum with 23% year-over-year revenue growth, driven by improved engagement with younger users on Instagram and FB Blue, Meta’s core social media platforms.

Meta’s leadership was also a point of praise, with the analyst stating that the company possesses “the best CEO in consumer internet,” signaling strong management as a critical component of the company’s ongoing and future success.

This leadership has contributed to Meta’s “GREAT” financial health score on InvestingPro, which offers 14 additional valuable insights about the company’s performance. Additionally, Meta’s advancements in artificial intelligence (AI) technology were recognized. The analyst believes that the Llama model, along with upcoming ‘Agentic’ products currently in development, will be instrumental to the company’s continued growth.

Despite the positive outlook, the analyst did acknowledge that the first half of 2025 poses a challenging year-over-year comparison for Meta, leading to a slight adjustment in estimates. Trading at a P/E ratio of 28, Meta appears to be valued above its InvestingPro Fair Value, though the overall assessment remains positive, with the higher price target reflecting confidence in the company’s trajectory. For a comprehensive analysis of Meta’s valuation and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro.

In other recent news, Amazon (NASDAQ:) has maintained a Buy rating from Truist Securities following record holiday sales, with the firm’s analysis suggesting strong U.S. e-commerce and digital advertising spending. Truist’s tracking indicates that Amazon is poised to capture approximately 49% of U.S. e-commerce market share. For the fourth quarter of 2024, Amazon’s U.S. Revenue is tracking at or slightly above the current consensus estimate of $114.5 billion.

Meta Platforms, the parent company of Facebook, recently announced a $0.50 quarterly dividend, continuing its practice of returning value to shareholders. The company also reported a significant legal victory that may impact its competitors, as a U.S. appeals court upheld legislation mandating ByteDance to sell TikTok.

Piper Sandler analysts released insights on the tech sector shares following the 2025 CIO Survey, revealing a strong outlook for IT spending. The shift towards Generative AI (Gen AI) from planning to implementation and heightened cloud spending intentions mark a dynamic year ahead for tech companies.

Finally, Meta Platforms Inc (NASDAQ:). is planning to construct a fiber-optic subsea cable that will encircle the globe, with an expected investment surpassing $10 billion. This initiative marks a significant move by the company to take control of its internet infrastructure.

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