SA analysts praise Meta’s outstanding Q2 as it pivots deeper into AI; stock hits all-time high

Meta Platforms’ (NASDAQ:META) second quarter earnings report and its forecast surpassed consensus estimates with ease, sending its shares up to a record high.

The stock soared as much as 13% to $784.69 on Tuesday, and helped drive U.S. markets higher alongside Microsoft (MSFT).

“We had another strong quarter with more than 3.4 billion people using at least one of our apps each day and strong engagement across the board,” CEO Mark Zuckerberg said on the earnings call. “Our business continues to perform very well, which enables us to invest heavily in our AI efforts.”

What are Seeking Alpha analysts saying?

Agar Capital (strong buy): “Meta Platforms delivered a standout quarter with 22% revenue growth, 43% operating margin, and EPS beating expectations by 21%.The company’s $70B capex is for building “unmatched AI infrastructure,” leveraging its integrated ecosystem, ad platform, and vision for personal superintelligence. Despite regulatory and Reality Labs risks, Meta’s AI monetization, resilience, and operating leverage justify its premium valuation. META is the most asymmetric, geopolitically resilient AI stock, already monetizing AI at scale and evolving beyond advertising.”

Jonathan Weber (buy): “Meta delivered a massive Q2 earnings beat. User growth remains robust, ad impressions and pricing are rising, and cost controls are strong, fueling impressive margin and profit expansion. AI investments and high capex are watchpoints, but management’s track record and overall cost discipline inspire confidence in future returns. Despite a higher valuation than previous years, Meta’s growth, dominance, and PEG ratio below 1 make META stock attractive for long-term investors.”

Lighting Rock Research (upgrade to buy): “Meta’s advertising business continues to deliver >20% revenue growth, driven by higher ad prices and increased impressions, supported by AI-powered solutions. Disciplined cost management led to significant margin expansion, though future margins may contract slightly due to rising depreciation from heavy infrastructure investment. Ongoing investments in AI and data centers are expected to sustain META’s growth, despite higher capital expenditures and associated risks.”

Eugenio Catone (hold): “Meta’s advertising engine remains highly effective, with strong ad price growth across most regions and a user base that continues to expand globally. Aggressive investments in AI and infrastructure, including the Scale AI acquisition, position Meta for sustained future growth despite near-term free cash flow pressure. Despite Meta’s outstanding fundamentals, I don’t see enough undervaluation to buy META stock at current levels; I’d wait for a 10-15% pullback before adding shares. CapEx will continue to increase as long as demand for AI services remains high. This trend could last for years.”

Ahan Vashi (hold): “Meta’s Q2 2025 earnings smashed expectations, driven by robust ad business and AI advancements. Despite heavy AI infrastructure and Reality Labs investment, Meta remains highly profitable and continues to deliver strong shareholder returns via buybacks and dividends. My valuation model shows Meta is slightly overvalued at current prices, with a 5-year CAGR below our 15% hurdle rate. Given my full allocation, I rate META a ‘Hold’ in the high-$700s; long-term investors may consider it, but I’ll await a better entry point for fresh capital allocation.”

The Asian Investor (strong buy): “Meta delivered strong Q2 results, beating earnings and revenue estimates, due to robust digital ad market growth and user expansion. Meta’s free cash flow remained exceptional, despite a temporary dip, due to aggressive AI and Data Center CapEx investments, positioning Meta for future growth. Meta is the second-cheapest big tech stock, with a compelling valuation and significant upside potential, as user monetization improves and AI investments pay off. Despite reliance on digital ads, Meta’s growth momentum and capital return profile make it a rock-solid buy, with a $1,000 price target.”

James Foord (strong buy): “Meta delivered record Q2 results, with revenue up 22%, expanding margins, and robust free cash flow driven by AI-powered ad optimization. Zuckerberg’s bold vision is to build AGI, with Meta Superintelligence Labs and a next-gen supercomputer launching in 2026 to power future AI advances. Meta’s aggressive AI investments carry risks—competition, regulatory hurdles, and uncertain AGI monetization—but its scale and assets are unmatched. With strong financials, deep AI talent, and a massive user base, Meta is a strong buy poised to dominate the next era of consumer AI.”

Rick Orford (strong buy): “Meta has maintained its growth trajectory over the past couple of quarters and has surpassed market expectations by a significant margin. Apart from the Realty Labs operating loss, I don’t see any real signs of market erosion for Meta. It still holds the highest number of social media users, and it doesn’t look like anyone’s going to dethrone the company anytime soon. And with its continuous investments in AI, we can expect higher ad revenue for the following quarters. As for Realty Labs – to me, this looks like a pet project that may pay out later on. I’m not concerned about it.”

Deep Value Investing (strong buy): “I don’t expect to see Meta trading below $750 anytime soon. Any pullback to this level could be a decent entry point for institutional funds that are uninvested. Meta’s growth is relentless. Q2 DAUs hit 3.4 billion, and the family of apps’ ad revenue is up 21% YOY, driven by improvements in AI recommendation algorithms. The AI narrative remains intact.”