Meta shares rally as Jefferies says it’s a bargain relative to Mag 7 peers
Shares of Meta rallied over 5% on Thursday, as Jefferies analyst Brent Thill doubled down on his “buy” rating for the company, calling the stock a relative bargain compared to its Magnificent 7 peers. The analyst set a price target of $910, well above the $645 where the stock is trading today.
News out of the World Economic Forum this week that Meta’s first models from its revamped AI teams are “very good” aligns with Thill’s argument that the company is well positioned to get back in the AI race with the “all-star model,” which is expected to be released in the first half of the year.
Recent cuts to Meta’s Reality Labs also signal that the company is focusing its spending where it matters. The Jefferies note added that the recent monetization of Threads via ads will help boost revenue.
Next week, Meta reports its fourth-quarter earnings, and Thill expects that even if the company raises its 2026 capital expenditure outlook, investors won’t be spooked, as the company has been clear that spending may continue to be high.
Recent cuts to Meta’s Reality Labs also signal that the company is focusing its spending where it matters. The Jefferies note added that the recent monetization of Threads via ads will help boost revenue.
Next week, Meta reports its fourth-quarter earnings, and Thill expects that even if the company raises its 2026 capital expenditure outlook, investors won’t be spooked, as the company has been clear that spending may continue to be high.
