Meta shares traded lower on October 19, 2026, despite Morgan Stanley raising its price target to $820 from $775 and retaining an Overweight rating. The higher analyst target contrasted with a second-quarter performance in which revenue grew strongly but operating profit declined.
Key Takeaways
- Morgan Stanley analyst Brian Nowak raised his Meta price target by $45 to $820.
- Second-quarter revenue rose 28%, while operating income fell 8%.
- Management’s third-quarter revenue guidance was $61 billion–$64 billion.
Table of Contents
- Meta shares decline despite a higher analyst target
- Revenue growth outpaces operating profit
- Next results will test revenue and spending expectations
- Conclusion
Meta shares decline despite a higher analyst target
Meta was quoted at $704.195 on October 19, down approximately 0.72% from the previous close of $709.33. That quotation was a trading snapshot, not a confirmed closing price.
Nowak’s revised target represents an analyst assessment rather than a company forecast or a guaranteed future share price. The available information does not establish a single cause for the stock’s decline.
| Item | Details |
|---|---|
| Second-quarter legal charges | $2.40 billion |
| Second-quarter severance expenses | $1.18 billion |
| Capital expenditures as a share of revenue | 51.1%, including finance-lease principal payments |
Revenue growth outpaces operating profit
Meta’s second-quarter 2026 filing covers the reporting period ended June 30. Revenue for the quarter increased 28% to $60.80 billion, while operating income declined 8% to $18.78 billion.
Legal charges and severance expenses weighed on profitability. The contrast between rising sales and falling operating income shows that stronger revenue did not translate into stronger operating profit during the period.
Capital expenditures, including finance-lease principal payments, reached $31.08 billion. That spending is distinct from the legal and severance costs affecting quarterly profitability.
Next results will test revenue and spending expectations
Management’s third-quarter revenue outlook of $61 billion–$64 billion provides the benchmark for the next results. It remains guidance, not reported revenue.
Operating margins and cash generation will help show how revenue growth translates into financial returns. Capital spending relative to revenue measures investment intensity; it does not establish how much profit those investments will ultimately produce.
Conclusion
The next quarterly results will provide the test of Meta’s revenue guidance and an update on profitability and capital spending. Morgan Stanley’s higher target does not resolve those operating questions.
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