Truist Reiterates Buy on Meta Platforms (META), Says AI Fears Are Priced In

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks on Market Radar. On January 14, Truist Securities reiterated a Buy rating on the stock with an $875.00 price target. While META has underperformed peers since Q3 earnings, the firm believes investor fears are already priced in.

In an investor note, the firm noted how Meta has underperformed its peers since the third-quarter earnings due to concerns about capital and operating expenditure plans for 2026. Moreover, Llama 4’s disappointing performance has fueled perceptions that the company is lagging behind other major tech firms in artificial intelligence.

Truist Securities believes that Meta’s valuation already reflects many of these fears. However, it fails to reflect on the potential to grow faster for longer and catch up in AI development.

Meta’s valuation at 20x P/E vs. GOOGL and AMZN at 30x+ already reflects much of those fear but fails to reflect its potential to grow faster for longer and ability to catch up in AI, in our view.

The research firm remains constructive heading into earnings, anticipating META’s results to be at the higher end of expectations, driven by robust user engagement and higher monetization stemming from better ranking and recommendations.

For 1Q, we expect both the revenue and Capex/Opex guides to bracket consensus ests.

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Disclosure: None.