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Meta Stock Could See 6% Move Following Wednesday’s Earnings Release

TLDR

• Meta is set to report its fourth-quarter earnings after the bell on Wednesday with traders expecting a substantial move in its stock price.
• Options pricing suggests Meta stock could shift by 6% in either direction by the end of this week with shares potentially reaching $712 or dropping to $633.
• Analysts are focused on Meta’s 2026 outlook and capital expenditures particularly related to its AI investments which could influence the stock’s movement.
• Meta’s earnings per share for the fourth quarter are expected to reach $8.17 with a record $58.43 billion in revenue marking a 21% increase from the previous year.
• The company’s strong ad business momentum is anticipated to drive a positive earnings report with a focus on new revenue streams like ads on Threads and premium subscriptions.

Meta Platforms (NASDAQ: META) is set to report its fourth-quarter earnings after the bell on Wednesday. Traders expect a substantial movement in Meta stock as the company’s financial results are released. Analysts predict a potential 6% shift in the stock price, with Meta’s shares possibly moving to either $712 or $633, depending on the company’s financial outlook and the results of its capital expenditures.

Meta Platforms, Inc., META

Expected Impact on Meta Stock Price

Meta stock is experiencing anticipation ahead of its earnings report. Options pricing indicates a potential 6% shift in either direction by the end of this week. Recent trading levels around $672 suggest that a move upwards could push the stock to $712, while a drop might take it down to $633, as seen earlier this month.

Traders are focused on how Meta’s earnings report will address capital expenditures, particularly its investment in AI. The company’s 2026 outlook will be under scrutiny, as investors are watching for any signs of overspending. If Meta’s capital expenditure guidance is more conservative than expected, it could lead to a positive stock price response.

Meta’s Potential Earnings and Ad Business Momentum

Meta is projected to report a strong fourth-quarter earnings per share of $8.17. This would represent a 21% year-over-year revenue increase, reaching a record $58.43 billion. Analysts believe that the company’s ad business, which is the bulk of its revenue, will continue to show momentum and could exceed expectations.

The rollout of ads on Meta’s Threads platform is also likely to be a key point of discussion. Analysts are eager to hear about Meta’s strategy for generating additional ad revenue through its newer platforms. Additionally, Meta may share details about its efforts to test premium subscriptions across various apps, which could further bolster investor confidence.

Wall Street analysts remain largely bullish on Meta stock. All 21 analysts covering the stock have issued “buy” recommendations. The consensus target price for Meta stock is approximately $841, suggesting a 25% upside from Monday’s closing price of $672.

With a solid ad revenue forecast and expected progress on monetizing new platforms, analysts believe there is further room for Meta stock to grow. The company’s earnings report on Wednesday could confirm the positive outlook and potentially drive the stock higher.

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