Three analysts remain bullish on Meta after the company announced plans to raise $95 billion through equity financing, though they raised questions about the company’s growing investments in artificial intelligence (AI), Seeking Alpha reported Monday (Oct. 26).
Wells Fargo maintained an Overweight rating and $995 price target on Meta but remained uncertain about the company’s spending next year; RBC Capital Markets maintained its Outperform rating and $800 target, while noting that investors are looking for returns from what may be even higher capital spending; and Yorkville maintained an Outperform rating and $920 target, while noting that Meta’s free cash flow turned negative in the third quarter, according to the report.
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PYMNTS reported Monday that when Meta announced its plans to raise $95 billion to support its AI efforts, the company said: “Meta’s planned investments will support its continued momentum across its core business and emerging AI opportunities.”
Meta pointed to its platforms such as Facebook and Instagram seeing record engagement due to “strong growth in video;” the growth of its Muse AI model, which attracted more than 10 million users in the United States and Canada in its first weeks; and the company’s opportunities to serve “high-margin inference demand” for its business customers with the launch of the Meta Enterprise platform and its advanced models.
PYMNTS reported in July that tech giants’ $724 billion AI bill had sparked investor worry. The report cited Bloomberg saying that Google, Amazon, Meta and Microsoft were expected to spend about $724 billion on capital projects this year and nearly $950 billion in 2027.
Willy Lee, principal at venture firm Neostellar Capital, told Bloomberg in the July report: “We’re in a period where people are inclined to sell off capex, and Microsoft and Meta and Amazon are all holding hands with Alphabet and jumping in to spend.”
It was reported in November 2025 that Meta investors were “losing patience” with AI spending although company’s earnings in the previous quarter exceeded expectations.
Meta CEO Mark Zuckerberg tried to ease these concerns by saying in an earnings call that it was “the right strategy to aggressively front-load building capacity.”
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