Meta Platforms (NASDAQ: META) has pushed meaningfully down in recent months, but a senior Rothschild & Co Redburn analyst believes the company’s upcoming earnings will resume upward momentum.
The social media behemoth is expected to report $8.15 a share of earnings on $58.4 billion in sales for its fiscal Q4 on January 28th. This would translate to a 1.6% bottom-line and a whopping 21% top-line growth on a year-over-year basis.
At the time of writing, Meta’s stock is down more than 15% versus its 52-week high.
How to play Meta stock heading into Q4 earnings?
According to James Cordwell, a senior expert at Rothschild & Co Redburn, Meta’s advertising lead and rapidly growing artificial intelligence (AI) footprint will push its stock much higher from here in 2026.
Cordwell upgraded the multinational this morning to “buy” and raised his price objective to $900, indicating potential upside of a staggering 38% from current levels.
“With imminent FY26 outlook set to leave estimates factoring in all the cost and little upside from AI, now seems opportune for investors to start building positions,” the analyst argued in his latest research note.
Note that META stock pays a 0.32% dividend yield. Additionally, the giant has billions authorized for buybacks this year, making it all the more exciting to own for the long-term.
META shares stand to benefit from AI tailwinds
In his research report, Cordwell dubbed Meta Platforms’ ads business a “demand machine”, which he believes could accelerate further by “extending Andromeda, GEM, and Lattice.”
He recommended long-term investors to stick with Meta shares also because the firm’s AI chief, Alexandr Wang, is “better qualified than appreciated.”
According to him, investors are growing excited again about artificial intelligence as new tech and products like Nvidia’s most sophisticated chips (Rubin) roll out in 2026.
This AI reboot could significantly benefit Meta Platforms that’s positioned to capitalise on two big opportunities – developing agentic AI subject-matter experts and transforming entertainment with AI video, Cordwell added.
Technicals also point to a rally ahead
All in all, the Rothschild & Co Redburn analyst believes both advertising and AI offer “compelling incremental revenue potential” that could drive META shares higher in 2026.
The Nasdaq-listed firm has an extensive SME customer base and strong position in video, which positions it “uniquely” within those two industries, he concluded.
While Meta Platforms remains significantly below its record levels, the AI stock has started seeing upward momentum build up in recent sessions, and the fact that it’s trading handily above its “50-day moving average” signals that it may accelerate after the company’s earnings on Jan. 28.
Investors could also take heart in the fact that Rothschild isn’t the only investment firm that favours buying Meta stock heading into its earnings release this week.
The consensus rating on META also currently sits at “strong buy” with the mean target of roughly $835, according to Barchart.
The post Meta stock outlook ahead of Q4 earnings: strong comeback or continued slump? appeared first on Invezz
