"Meta Platforms (Nasdaq: META) has faced criticism for investing too heavily in the Metaverse, but the company's broader business has continued to perform well. During a recent episode of The AI Investor Podcast, 24/7 Analysts Eric Bleeker and Austin Smith discussed whether the announced cutbacks on the Metaverse could help generate even greater returns for Meta in 2026. The recent announcement that Meta will be acquiring the AI wearable company Limitless has signaled to many a strategic shift toward AI-focused opportunities."
"Some believe that if Meta executes well, shares could rise toward $900, potentially even $1,000 per share. "I really like that Zuckerberg is willing to make these big bets," Smith explained. "That's what you get with a founder, CEO, who is visionary in the way that he is. But you also gotta know when to fold them, right? And the Metaverse has just not been working out.""
"Bleeker added, "If you're someone who owns Meta, this is objectively positive. If we can see this discipline from them, and if AI continues to boost their business results, there's an opportunity for shares to trade closer to $900 per share this year. That would be a very bullish case. On the flip side, if they continue spending in ways Wall Street doesn't like, you could see them trading as low as $500 per share, the low end of their baseline.""
Meta Platforms faced criticism for heavy Metaverse investment while its core business remained strong. The company announced cutbacks to Metaverse spending and plans to acquire AI wearable company Limitless, signaling a strategic shift toward AI-focused opportunities. Market expectations include potential share appreciation toward $900 to $1,000 if disciplined spending and AI-driven results materialize. Conversely, continued spending that displeases investors could drive shares toward $500. A model AI-stock portfolio that includes Meta has shown significant prior winners with returns of 418%, 289%, and 211%.
Read at 24/7 Wall St.
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