META Stock Today, February 10: $860 PT vs AI Capex Squeeze Debate

The meta stock price is edging higher today, up about 2.4% to US$677.22 as Meta Platforms (META) draws fresh attention after Cantor Fitzgerald raised its target to $860. Investors in Canada are weighing AI-driven growth against the risk that Meta AI capex could reach as high as $135 billion in 2026. That scale of spend may pressure margins and free cash flow near term. Still, Street sentiment sits at Strong Buy with roughly 20% upside implied. We break down what matters most for Canadian portfolios now.

Cantor’s $860 target and what it implies

Cantor’s $860 target implies roughly 27% upside from the recent US$677.22 level, even after a strong multi-year run. The Street still leans bullish, with a Strong Buy consensus and about 20% upside implied. Key context: the 52-week high is US$796.25, which leaves room if execution stays solid. Near term, we see quarterly price projections clustering around the US$737 area.

Cantor cited a Q4 beat and above-consensus Q1 revenue outlook as reasons to lift the target while keeping an Overweight rating. The case rests on improving ad demand, engagement, and AI-driven ranking. Details of the target hike and rationale are available via Yahoo Finance reporting here. The debate now is how growth stacks up against heavier infrastructure spending.

AI capex squeeze: risk and reward

Management signals Meta AI capex could reach up to $135 billion in 2026. That would likely compress near-term margins and free cash flow. Today, the price to free cash flow is about 37.3, and free cash flow yield is near 2.7%. Capex intensity is already high, with capex running roughly 60% of operating cash flow and about 35% of revenue on a trailing basis.

The spend targets training and inference for large models, better ad ranking, and new experiences across Facebook, Instagram, Messenger, and WhatsApp. If successful, improvements in ad relevance and time spent can support revenue and profits over time. For added context on the investment case and AI optionality, see this overview from The Motley Fool here.

Valuation, quality, and balance sheet

Meta’s profitability is robust, with an operating margin near 41% and a net margin around 30%. Return on equity is strong at about 30%. The meta stock price equates to a trailing P E near 28.5, which is not cheap but reasonable for this growth profile. Dividend yield is modest near 0.31%, reflecting a focus on reinvestment and buybacks.

Liquidity looks solid with a current ratio of roughly 2.6 and interest coverage near 59 times. Debt to equity sits around 0.39, leaving flexibility to fund growth. Cash per share is about US$32.36, offering a buffer. The dividend runs at US$2.10 per share annually. Overall, balance sheet strength supports ongoing AI and data center expansion.

Trading setup for Canadians

Momentum is mixed. RSI near 49 is neutral, ADX around 28 signals a steady trend, and the MACD histogram is slightly negative. Price sits above the upper Bollinger Band near US$670.68, which can invite mean reversion. We see potential support around the 50-day average near US$656 and resistance at the 200-day near US$686. Expect daily volatility close to US$15.

Canadian investors face USD exposure, so currency swings can lift or reduce CAD returns even if the meta stock price is flat. Consider account type for U.S. dividends. RRSPs may reduce withholding under the Canada U.S. tax treaty, while TFSAs typically do not. Confirm details with your broker. Next catalyst: Q1 report on April 29, 2026.

Final Thoughts

For Canada-based investors, the setup is clear. The meta stock price reflects strong fundamentals and rising AI ambition, while the 2026 Meta AI capex path could pressure free cash flow near term. Cantor’s $860 target highlights upside if execution holds and ad demand stays firm. We would track three items closely: capex guidance cadence, ad pricing and engagement trends, and early signs of AI monetization across apps. Technically, dips toward the 50-day average may offer better entries, while the 200-day remains a near-term test. With a Strong Buy consensus and a sturdy balance sheet, position sizing and patience matter most. This overview is informational, not investment advice.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.