Jefferies and Canaccord Genuity see upside as Meta leans into AI and ad innovation
Analysts Show Confidence Ahead of July 30 Report
Meta Platforms (NASDAQ: META) stock received a vote of confidence from two of Wall Street’s most respected analysts ahead of the company’s Q2 earnings report on July 30.
- Brent Thill of Jefferies raised his price target from $790 to $845, reiterating a Buy rating.
- Maria Ripps of Canaccord Genuity also reaffirmed a Buy, boosting her target from $825 to $850.
These updates reflect continued analyst optimism despite an ongoing $8 billion shareholder lawsuit against CEO Mark Zuckerberg over privacy issues.
Q2 Expectations: Solid Growth Amid AI Investment
Wall Street expects Meta to post earnings per share (EPS) of $5.84, representing a 13.2% year-over-year increase. Both Thill and Ripps project mid-teens revenue growth, driven by ad performance and AI-fueled innovation.
- Thill estimates Q2 revenue at $45.2 billion, up 15.7% YoY, above the Street’s 14.2% forecast.
- Ripps anticipates ad and total revenue growth of ~14% YoY, with tariff-related headwinds contributing to modest sequential deceleration.
Jefferies: AI Strategy and Ad Metrics Support Upside
Thill sees Meta’s $14.3 billion investment in Scale AI—along with the appointment of Alexandr Wang as Chief AI Officer—as pivotal to its long-term AI roadmap.
“Meta is restructuring its AI organization after a lukewarm reception to Llama 4,” Thill explained. “The payoff on these high capex efforts will materialize over time.”
Other bullish drivers include:
- Positive CPM (cost per mille) trends
- Increased time spent on platforms (per SensorTower data)
- Strong performance in ad recommendation metrics
While Thill acknowledges elevated capital expenditures may pressure near-term earnings, he remains bullish on Meta’s long-term return on investment.
Canaccord: META Is the Top Digital Ad Pick
Maria Ripps maintains that Meta is Canaccord’s top digital advertising stock, even as it trades near all-time highs.
- She highlighted Meta’s generative ad model, launched in Q1 2025, as delivering twice the efficiency of previous models.
- Ripps expects continued momentum from AI improvements, new hires from OpenAI and Apple, and strategic moves like:
- Meta Superintelligence Labs
- Acquisition of voice AI startup PlayAI
- A 49% stake in Scale AI
“Despite META’s premium valuation, the setup remains attractive—especially heading into 2026,” Ripps concluded.
Is Meta (META) Stock a Buy?
Wall Street consensus: Strong Buy
- Average price target: $737.86
- Upside potential: ~5%
- Year-to-date gain: +20%
With its ad business accelerating, AI investments deepening, and earnings momentum building, analysts remain largely constructive on Meta’s outlook.