Baird analysts classify Meta Platforms as a "battleground" stock heading into 2026. This designation reflects investor division over the company’s aggressive spending on artificial intelligence. The firm maintained its "Outperform" rating but slightly reduced the price target from $820 to $815.
The bull case focuses on key opportunities. These include the launch of new Llama models and the increasing monetization of services. Analysts specifically cite WhatsApp and Threads as growth drivers.
The bear case centers on two primary concerns. First, Meta may be lagging in AI innovation. Second, there is limited visibility on the return from its massive infrastructure investments.
Despite these risks, the analyst notes that many concerns are already priced in. Meta has recently underperformed compared to the Nasdaq. The firm advises investors to be opportunistic, citing Meta’s successful track record in navigating previous market disruptions.