Evercore Reiterates Outperform on Meta Platforms (META) Ahead of Earnings

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks in Focus on Wall Street. On Janaury 26, Evercore ISI analyst Mark Mahaney reiterated an Outperform rating on the stock with an $875.00 price target. The rating affirmation comes ahead of the company’s fourth-quarter earnings report, due on January 28.

The firm anticipates that Meta will post a modest earnings beat for the fourth quarter, while issuing guidance broadly in-line with expectations. However, it noted potential risk to Wall Street’s 2026 total expenditure and capital expenditure assumptions.

It noted that the Street’s Q4 revenue estimate of $58.3 billion, which represents 21% year-over-year growth, appears achievable.

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This outlook is particularly supported by positive advertising demand checks. The firm pointed to feedback from a large advertising agency that forecast Meta spend to grow 29% year-over-year in Q4, while another reported that overall digital ad spending in Q4 is exceeding expectations.

Evercore ISI also highlighted how Meta is achieving improving returns from its artificial intelligence investments, with one buyer particularly noting a 4% return on investment lift on the platform in 2025.

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