Meta Platforms (META) Positioned for Strong Ad Market Growth Through 2026

Meta Platforms, Inc. (NASDAQ:META) ranks among the best AI stocks to buy according to analysts. On December 11, Piper Sandler reiterated its Overweight rating on Meta Platforms, Inc. (NASDAQ:META) with a $840 price target, naming it the firm’s top large-cap selection. According to the firm, Meta Platforms, Inc. (NASDAQ:META) shares have returned in the mid-single digits over the preceding year despite a 10% multiple compression.

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According to Piper Sandler’s advertising buyer survey, the market is expected to develop faster through 2026, which should be favorable for Meta Platforms, Inc. (NASDAQ:META), considering its well-established position in social media. Due to these favorable market conditions, the firm predicts that Meta’s revenue will increase by approximately 20% year-over-year in 2026.

The company’s focus on incorporating AI into its platforms, such as Facebook, WhatsApp, and Instagram, is improving user engagement and boosting ad revenues. In the third quarter of 2025, advancements in AI-powered recommendation algorithms resulted in a 5% rise in time spent on Facebook and a 30% increase on Threads. In the same quarter, Meta Platforms, Inc. (NASDAQ:META) launched AI technologies such as video production, image animation, and AI-generated music to assist advertisers in optimizing their ad creatives and improving performance.

Meta Platforms, Inc. (NASDAQ:META) is focused on developing AI-powered social platforms and immersive technologies, including Messenger, Instagram, and WhatsApp.

While we acknowledge the potential of META to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.