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Today's Bonus Article After 16% Fall, Analysts Eye a Big Recovery in Meta PlatformsWritten by Leo Miller. Published 11/6/2025. 
Key Points - Meta Platforms took a significant hit after its latest earnings report, with shares down over 16% since then.
- However, Wall Street price targets fell much less, indicating a potential opportunity in Meta's shares.
- See why the company's AI capital expenditure plans spooked markets—and spoiler alert—this isn't the first time this has happened.
Meta Platforms (NASDAQ: META) recently experienced its largest post-earnings drop in three years. Shares fell more than 11% on Oct. 30 as investors digested the company's Q3 2025 earnings and commentary. That was the steepest decline the Magnificent Seven stock has seen after an earnings report since Q3 2022. There are five truths reshaping America's financial future — and ignoring them could be costly. From an overextended government and vanishing savings to AI-driven job displacement and a widening wealth divide, the warning signs are clear. But according to Porter Stansberry, these same forces are also driving one of the largest wealth transfers in history. His new exposé, The Final Displacement, reveals the economic blueprint behind these shifts — and the final step he believes every American must take to protect and grow their wealth before it's too late. Click here to watch The Final Displacement for free But Wall Street's reaction told a different story. Analyst sentiment remained surprisingly steady even as the stock plunged, suggesting a potential disconnect between short-term market panic and long-term valuation. Below, we break down the shift in analyst forecasts and examine what's driving both the fear—and the optimism. Wall Street Analysts Show Confidence in META After Q3 Plunge Relatively speaking, analysts largely held to their forecasts despite the sell-off. MarketBeat's price-target data shows 20 analysts updated their forecasts, and the average price target fell by only 5%. That decline is less than half the actual drop Meta shares recorded the day after the report. The divergence widened in the days that followed: since reporting, Meta shares were down more than 16% as of the Nov. 4 close. The market clearly reacted more negatively to the results than analysts did, which could signal a buying opportunity for longer-term investors. As of Nov. 5, the MarketBeat consensus price target for Meta is nearly $827, implying roughly 29% upside. Analysts who issued or updated targets after the company's Q3 report are even more optimistic—their average target is about $857, suggesting roughly 37% upside. Even the lowest updated target—$770 from Wells Fargo & Company—implies nearly 23% upside. Rosenblatt Securities was among the few firms that raised its target; its $1,117 forecast is the most bullish tracked by MarketBeat and implies potential upside of about 78%. In short, analysts are signaling confidence that Meta shares can recover substantially. Meta's AI Spending Spree Could Weigh Mightily on FCF in 2026 Meta's spending outlook was a key driver of the stock's post-earnings drop. The company projects capital expenditures (CAPEX) of $71 billion in 2025, up from $39 billion in 2024, and warned that CAPEX growth would be "notably larger" in 2026. If that guidance holds, 2026 CAPEX could exceed $103 billion. Projections for 2026 indicate cash from operations of roughly $127 billion. Even if CAPEX comes in at $103 billion, that would leave free cash flow (FCF) around $24 billion—more than 40% below the $42.5 billion in FCF Meta generated over the last 12 months. In short, Meta is signaling massive near-term AI investment, which could put significant pressure on FCF next year. It's understandable investors are worried; the company appears willing to sacrifice near-term cash generation to position itself for long-term AI-driven growth. Despite Fears, Meta Has Shown AI Investing Prowess in the Past It's worth revisiting Meta's situation after Q3 2022. Following that report, shares plunged more than 24% to about $97 as the advertising business faced pressure and leadership prioritized investments—most notably in the metaverse and AI. At the same time, the company was investing in AI to improve ad targeting and delivery. Analysts cited those investments when downgrading the stock at the time. Meta then went on an impressive run. As of the Nov. 4 close, the stock traded around $627, up more than 380% from that $97 low. Early AI investments helped its AI-powered ad tools reach an annual revenue run rate above $60 billion—a major contributor to the company's performance. That history doesn't guarantee similar returns going forward, but it does show Meta has previously proven skeptics wrong when it comes to AI-focused spending.
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