Meta Platforms (NASDAQ: META) is inching higher in extended hours after the tech titan posted its Q4 earnings that handily topped Street estimates on the back of strong AI tailwinds.

The multinational earned $8.88 on a per-share basis on $59.89 billion revenue – well above $8.23 a share and $58.59 billion that analysts had called for.

At the time of writing, Meta Platforms stock is down more than 12% versus its 52-week high.

Should you invest in Meta stock after Q4 earnings?

According to Meta Platforms, the total number of daily active users across its family of apps stood at 3.58 billion in the fourth quarter – essentially in line with Street estimates.

In terms of capital expenditures, Susan Li, the firm’s chief of finance, guided for up to $135 billion, nearly double what it spent last year, signalling plans to continue investing rather aggressively on the AI buildout.

Such an increase in CAPEX could compress Meta’s operating margin by nearly 5.0% this year, as per Wall Street estimates.

But Brent Thill – a senior Jefferies analyst – believes “peak pressure” is already baked into META stock following recent weakness.

In a pre-earnings research note, he recommended that long-term investors stick with the Nasdaq-listed firm as its upside outweighs risks in 2026.

How high could META shares fly in 2026?

While Meta Platforms is set to spend billions on AI this year, it has recently reduced budget for its metaverse unit, which Thill dubbed a “positive sign” indicating cost discipline in his latest report.

The Jefferies analyst agreed that the company’s Llama 4 model didn’t fare well with rivals – but said its new text and image AI models scheduled for the first half of 2026 will change the narrative.

The upcoming offerings will confirm Meta’s investments including on AI talent are paying off, he added.

Thill maintains a “buy” rating on Meta shares with a price objective of $910 – indicating potential upside of roughly 30% from current levels.

Meta Platforms offered upbeat guidance today

META stock appears attractive as a long-term holding also because the titan issued solid guidance for its current quarter. In Q1, it sees sales coming in at $55 billion, well above the Street at $51.41 billion.

The Nasdaq-listed firm continues to tap on AI to optimize ad performance and boost engagement across its platforms. Yet, it’s currently trading at a steep discount to rival Alphabet Inc.

Meta shares are currently going for about 21x forward earnings versus more than 28x for GOOGL. That’s a much bigger discount than “historical norms” – Jefferies’ Brent Thill told clients.

All in all, the company’s “top-line strength and continued efficiency gains” can offset the increase in operational expenses, which makes its stock worth owning in 2026, he concluded.

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