Should You Buy Meta Platforms Stock Before July 29? Wall Street Has a Clear Answer for Investors
Trevor Jennewine, The Motley Fool
Tue, July 28, 2026 at 2:45 PM GMT+5:30
4 min read
- META
-0.22% - NVDA
-4.99%
Meta Platforms (NASDAQ: META) stock is down 24% from its high amid concerns about how much money the company is spending on artificial intelligence infrastructure. Investors will get more information on that topic when Meta announces second-quarter financial results on Wednesday, July 29
However, Wall Street sees a buying opportunity ahead of the report. Among 71 analysts, Meta has a median target price of $815 per share. That implies 36% upside from its current share price of $598
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Here’s what investors should consider before buying Meta stock
Meta is primarily monetizing AI through its advertising business
Meta Platforms owns the three most popular social media platforms by monthly active users: Facebook, WhatsApp, and Instagram. The company uses consumer data generated by those platforms to recommend content and target ads, creating a network effect that makes its social media properties more engaging for users (and more valuable for advertisers) over time
Meta Platforms is investing aggressively in artificial intelligence infrastructure. Earlier this year, the company raised its 2026 capital expenditure (capex) forecast to $135 billion at the midpoint, up from $125 billion. That is nearly double its $72 billion in capex spending in 2025, which itself was nearly double the $39 billion in capex spending in 2024
Meta is already realizing returns on those investments. In the first quarter, ad impressions delivered across its social media properties increased 19%, and the average price per ad increased 12%. Those changes reflect higher user engagement and greater advertiser demand, driven by proprietary AI models that rank and recommend content
Nevertheless, Meta stock currently trades 24% below its high, suggesting that investors are worried about whether the company can earn sufficient returns on that invested capital. On that topic, Bloomberg reports that Meta is planning to rent out excess compute capacity to customers, essentially creating a neocloud business similar to CoreWeave
Meta has not commented on the Bloomberg report, but management could weigh in on the topic when the company reports financial results this week. Meta may also address other AI monetization opportunities, including its personal assistant, Meta AI. The company recently added shopping mode and task automation features to the product, expanding its addressable market
