Meta Shares Dip Despite Morgan Stanley Raising Price Target to $820
Morgan Stanley raised its Meta price target to $820 from $775 and kept an Overweight rating, but the shares slipped on October 19 as spending weighs on margins.
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what happened
Morgan Stanley analyst Brian Nowak raised his price target on Meta Platforms to $820 from $775 and kept an Overweight rating, according to gurufocus.com, which cited TheFly. On October 19 the shares traded at $704.195, about 0.72% below the prior close of $709.33.
In the second quarter, Meta's revenue grew 28% to $60.80 billion, yet operating income fell 8% to $18.78 billion. Legal charges of $2.40 billion and severance costs of $1.18 billion squeezed profitability. Capital spending, including principal payments on finance leases, came to $31.08 billion, or 51.1% of revenue. Management guided third-quarter revenue to between $61 billion and $64 billion.
Gurufocus's valuation model puts its GF Value estimate at $868.55, with the stock trading 18.92% below that level.
why it matters
The key question for investors is whether Meta can turn strong advertising growth into firmer cash generation. Capex running at roughly half of revenue means margins must recover for the spending to pay off, and a higher target leaves less room for disappointment in the next report.
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sources
- Meta Stocks Fall Although Morgan Stanley Lifts Its Earnings-Week Target — gurufocus.com, 19 October 2026 at 19:50 UTC
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