MetaPlatforms, Inc. (NASDAQ:GOAL) is one of the AI stocks in focus on Wall Street. On January 26, KeyBanc analyst Justin Patterson lowered his price target on the stock to $835.00 (from $875.00), while maintaining an Overweight rating. The company predicts that META will benefit from AI product cycles in 2026 along with Alphabet (GOOGL).
We believe OW-rated Alphabet (increase PT to $360) and OW-rated Meta (decrease PT to $835) should benefit from AI product cycles in 2026.
While Alphabet’s AI advantage is increasingly reflected in its valuation, KeyBanc noted how Meta stock values ​​investment and ROI concerns. The divergence is evident in Meta’s valuation, which is currently trading at its widest P/E discount to Alphabet (GOOGL) since 2002.
Looking ahead, the company expects revenue guidance for both companies to remain above consensus estimates.
With our 2026E/2027E revenue estimates ahead of consensus for both GOOGL (1%/3%) and META (1%/2%), our view is that both stocks can perform during the year.
As such, short-term sentiment on Meta remains debatable due to concerns over spending levels. Investors fear that operating expenses could exceed $160 billion. The company’s own model projects $157 billion in operating expenses and $120 billion in capital expenses.
However, Keybanc believes that product momentum in the spring will support further revenue growth through 2027.
While we recognize META’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None.