Cantor Fitzgerald Lowers Price Target for Meta Platforms

NEW YORK, NY — Cantor Fitzgerald has reduced its price target for Meta Platforms, Inc. from $830 to $720, maintaining an ‘Overweight’ rating on the stock. The decision comes amid rising concerns about the company’s operating expenses and market conditions.

On November 19, analysts at Cantor Fitzgerald expressed optimism about Meta’s long-term prospects despite cautioning about near-term cost pressures. Investors were informed during the 3Q25 earnings call that Meta anticipates significant growth in its fiscal year 2026 operating expenses, driven by increased depreciation, infrastructure costs, and an expanded workforce focused on artificial intelligence.

As part of its strategy, Meta has formed partnerships with four major cloud vendors — Alphabet, Oracle, CRVW, and NBIS — which are expected to significantly ramp up the company’s cloud computing costs to over $40 billion. This growth in expenditure raises questions about future profitability and operational efficiency.

Cantor Fitzgerald estimates that Meta could face an additional $4 billion in costs for FY26E, reflecting a year-over-year increase of 3 percentage points. Analysts noted that much of this expenditure is likely linked to additional capacity brought online by Meta’s cloud partners.

“While there is a layer of uncertainty tied to these costs, we expect some incremental headwinds in 2026,” the firm stated. “As a result, we currently forecast total operating expenses of $152 billion, representing a 30% year-over-year increase for FY26E.”

Meta is heavily investing in advertising, artificial intelligence, and the metaverse, signaling its commitment to evolving with technological advancements. While Cantor Fitzgerald acknowledges potential risks, it emphasizes the importance of strategic growth in AI and other sectors.

As the company navigates these transitional challenges, it remains a focal point for investors eyeing the broader trends in technology and artificial intelligence.