10 AI Stocks Investors Are Watching Closely

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Investors: 273

Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks Investors Are Watching Closely. On July 16, Cantor Fitzgerald raised its price target on the stock to $828.00 from $807.00, while maintaining an “Overweight” rating. The firm raised its FY26E EPS estimates by 3% and reiterated its Overweight rating / Top pick.

Earnings Preview: “We expect META to report 2Q25E results with a decent upside to consensus on revenues and EPS driven by outperformance in the core ads business as tariff-driven uncertainties moderated in May/June. The company’s 3Q25E revenue guide should indicate stable y/y growth with little deceleration (around $47.5/$48B at the high-end).

On FY outlook, META is likely to reiterate its opex guidance, but recent investments in AI talent (CFe ~$500M–$1B in incremental annual opex) move the target above the low end. Our checks with digital ad agencies and performance marketers in June/early July indicated healthy ad spend and share gains by META in 2Q, including a modest acceleration from April trends (adjusted for Easter).

Additionally, META continues to expand its advertising offerings with new capabilities for A+, a potential tailwind for 2H25E. Overall, we expect a strong quarter from META and see upside revisions to street (Visible Alpha) FY26E EPS of ~$28 per share on the 2Q print.

Investor expectations, admittedly, are elevated with shares trading at 25x FY26E EPS, near the high-end of the midterm valuation range (17–27x). That said, 3Q25E guide with little deceleration in revenue growth should be viewed favorably.

We have raised our FY26E EPS estimates by 3% and reiterate our Overweight rating / Top pick. Our revised PT of $828 is based on 28x FY26E EPS (vs. $807 previously).”

-Analyst Deepak Mathivanan