Shares of Meta Platforms have faced recent challenges, trading approximately 20% below their all-time high from August as investors react to a post-earnings reset linked to increasing spending on artificial intelligence (AI) infrastructure. The stock’s decline followed guidance indicating that capital expenditure is set to rise significantly in 2025, prompting a shift in sentiment from steady growth to a more cautious outlook. The market is currently weighing strong advertising fundamentals against the anticipated costs and timelines associated with Meta’s AI build-out.
In this context, an AI price-prediction model powered by OpenAI’s GPT was employed to analyze Meta’s potential stock trajectory. At the time of the analysis, Meta’s shares were trading at $641.15. For December, the model projected an average price of $635.00, indicating an implied movement of approximately 0.96% lower. Technical indicators showed a mixed picture, with the Moving Average Convergence Divergence (MACD) turning positive and the Relative Strength Index (RSI) sitting in the mid-50s, suggesting a neutral market sentiment. While the forecast indicates a slight pullback in the immediate term, broader predictions suggest that Meta’s stock could reach $1,084 by 2030.
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Technical analysis reflects that the MACD has recently moved back above zero following a several-week dip, and the RSI suggests a market that has stabilized without entering overbought territory. This balance indicates a short-term consolidation phase, which aligns with Meta’s underlying business performance. In the third quarter, the company reported a revenue increase of about 26% year-over-year, reaching approximately $51 billion, driven by AI-enhanced targeting and recommendation systems that have bolstered advertising performance across Facebook, Instagram, and Threads.
Despite robust revenue figures, spending remains a critical concern for investors. Management has guided that capital expenditures for 2025 could reach the low $70 billion range, while external estimates suggest that annual investments in AI and data centers may exceed $100 billion by 2026. This significant scale of investment has become central to investor discussions, particularly as Meta diversifies some of its AI hardware toward custom and third-party silicon.
Adding to the uncertainty are ongoing regulatory and reputational issues, as heightened scrutiny of scam advertisements and content systems presents additional challenges to a narrative largely dominated by AI advancements and monetization strategies. Nevertheless, Wall Street sentiment remains constructive, with consensus 12-month price targets clustering in the low- to mid-$800s, implying a potential upside of 30% to 35% from current levels. This outlook, while positive, reflects a more tempered stance compared to earlier in the year.
Given these fundamentals, the model’s forecast of a 0.96% pullback within the next month appears measured and reflective of investor sentiment. Meta is likely to navigate a narrow trading range as it balances strong revenue momentum with the financial realities of its ambitious AI infrastructure plans. As the company continues to innovate and adapt, its performance will be closely monitored by investors and analysts alike, particularly in light of the evolving landscape of digital advertising and AI technologies.
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This article originally appeared on Benzinga.com.
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