Meta Could Reclaim $790 High Before 2029 as 28% Revenue Growth Outruns 17 P/E
Updated
Updated · The Motley Fool · Aug 31
Meta Could Reclaim $790 High Before 2029 as 28% Revenue Growth Outruns 17 P/E
2 articles · Updated · The Motley Fool · Aug 31
Summary
$790 is the target an analyst says Meta can top before 2029, arguing the stock needs about 36% upside by end-2028 — roughly 14% annual gains — without any valuation expansion.
28% second-quarter revenue growth to $60.8 billion underpins that call, with ad impressions up 14%, average ad prices up 12%, and Meta's apps reaching 3.60 billion daily active people.
Costs remain the central risk: second-quarter expenses jumped 55% to $42.0 billion, operating margin fell to 31% from 43%, diluted EPS dropped 13% to $6.18, and free cash flow shrank to $784 million from $8.5 billion.
Legal and restructuring charges distorted results further, including $2.4 billion tied to legal proceedings, $1.18 billion of severance, and an expected $10 billion third-quarter legal expense after Meta agreed to settlements worth up to $17.7 billion.
The broader test is whether Meta's $130 billion to $145 billion 2026 AI and core-business build-out can lift earnings fast enough; if expenses keep rising far faster than revenue, the forecast breaks down.