Meta Platforms (NASDAQ: META) Receives Cowen & Co. Upgrade on AI Strategy

Font: Financial Modeling Prep  • May 01, 2026

• Cowen & Co. upgraded Meta Platforms (NASDAQ: META) to a Buy rating, citing its strong strategic position in the AI sector.
• Despite a strong earnings report with $10.44 EPS and 33% revenue growth to over $56.30 billion, Meta shares fell 10% due to increased capital expenditure forecasts.
• The upgrade views the current stock price of $608.75 as a buying opportunity, aligning with a Wall Street consensus price target of $855.11.

On May 1, 2026, analyst firm Cowen & Co. upgraded its rating for Meta Platforms (NASDAQ: META) to a Buy. Meta Platforms is a technology giant known for its social media and communication applications. The company is a dominant force in the digital advertising market and is now expanding its focus into artificial intelligence and robotics.

The upgrade reflects Meta's strong strategic position in the AI sector. As highlighted by Seeking Alpha, the company is revolutionizing advertising by using its own custom AI chips and controlling its entire infrastructure. This unique approach allows for highly efficient and scalable ad automation, serving its eight million advertisers and driving significant revenue growth.

This positive outlook comes after a recent period of stock volatility. As reported by 247wallst.com, Meta shares fell 10% despite a very strong earnings report. The company posted an earnings per share (EPS) of $10.44, beating estimates by 57%, while its revenue grew 33% year-over-year to more than $56.30 billion.

The market's negative reaction was due to increased spending plans. Management raised its forecast for capital expenditures, which is money spent on long-term assets like servers and buildings, to a range of $125 billion to $145 billion. Investors were concerned that this high level of spending could impact near-term profitability.

At the time of the upgrade, Meta's stock price was $608.75, reflecting the recent selloff. This valuation is viewed by Cowen & Co. as a buying opportunity, a sentiment that aligns with the broader Wall Street consensus price target of $855.11 for the stock.