Billionaire investor Bill Ackman is making headlines with a renewed stake in Meta Platforms (NASDAQ:META), signaling confidence in the company’s long-term artificial intelligence strategy. As forecasts predict the AI economy could reach $4.8 trillion by 2033, investors are asking whether META stock February 2026 presents an opportunity or if the market has already priced in much of the upside.

META Stock Performance and Valuation

Over the past 52 weeks, META stock is down about 11%, and year-to-date (YTD) it has slipped 2.2%. Despite this, the stock trades at roughly 22.8x forward earnings, well above the sector average of 14.5x, reflecting expectations for continued growth.

Meta’s recent decision to start paying a quarterly dividend also adds appeal for income investors. The stock yields roughly 0.31% annually, with a forward payout ratio of just 6.93%, leaving room for potential increases. The latest dividend was $0.525 per share, paid in December 2025.

Strong Fundamentals Support AI Expansion

Meta’s operating metrics remain robust. Daily active users reached 3.58 billion, up 7%, while ad impressions rose 18% in Q4 2025 and 12% for the full year. Revenue climbed to $59.89 billion in Q4 and $200.97 billion for 2025, representing 24% and 22% year-over-year growth, respectively.

Costs rose in parallel, up 40% in Q4 and 24% for the year, reflecting heavy AI and infrastructure spending. Even so, operating cash flow hit $36.21 billion in Q4 and $115.80 billion for 2025, with free cash flow of $14.08 billion in Q4 and $43.59 billion for the full year. Capital expenditures totaled $72.22 billion for 2025, with cash and marketable securities ending at $81.59 billion. Meta also repurchased $26.26 billion in shares during the year, signaling confidence in long-term value creation.

Growth Engines Driving META

Meta’s AI ambitions are supported by strategic partnerships and infrastructure investments. A multiyear, up-to-$6 billion agreement with Corning (NYSE:GLW) will expand U.S. data centers with advanced fiber and connectivity solutions. Higher-capacity networks will support massive AI workloads, enabling faster, more reliable services across Meta’s apps.

On the energy front, Meta is partnering with TerraPower to build up to eight Natrium nuclear plants, potentially providing 2.8 GW of carbon-free baseload energy. Combined with NextEra Energy Resources (NYSE:NEE) contracts totaling 2.5 GW, Meta secures sustainable, reliable power for its AI operations, positioning the company to scale efficiently.

Analyst Outlook and Price Targets

Wall Street remains largely bullish. For Q1 2026, Meta expects revenue between $53.5 billion and $56.5 billion, with full-year expenses projected at $162–$169 billion. Analysts estimate earnings per share (EPS) of $6.67 for Q1 2026, $29.67 for fiscal 2026, and $33.79 for fiscal 2027, implying growth of 3.73% for the quarter, flat for 2026, and 13.89% for 2027.

Major firms are raising price targets. Bank of America lifted its target to $885, Cantor Fitzgerald to $860, and Jefferies set an ambitious $1,000 while naming META stock a “Top Pick.” Out of 56 analysts surveyed, all rate the stock a consensus “Strong Buy,” with a mean target of $862.35—approximately 34% upside from the current $642.53 price.

Should Investors Follow Bill Ackman?

For retail investors considering META stock February 2026, the case for ownership hinges on a long-term perspective. Meta’s large-scale AI investments, cash-rich balance sheet, and ongoing revenue growth provide a foundation for continued expansion. However, the stock’s premium valuation and substantial infrastructure spending could lead to near-term volatility.

Ackman’s involvement signals institutional confidence, suggesting that major investors see the current levels as an opportunity to gain exposure to Meta’s AI growth story. Combined with ongoing capital returns and a diversified business model, shares may continue to trend higher over a multi-year horizon.

Conclusion

META stock February 2026 remains an attractive option for investors who can tolerate short-term swings. With a strong balance sheet, robust cash generation, strategic AI and energy investments, and the backing of high-profile investors like Bill Ackman, Meta is well-positioned to capitalize on the multi-trillion-dollar AI economy. While the road may include bumps, the long-term growth trajectory suggests potential for significant upside, making this a stock worth considering for patient investors.

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