Currently, Meta Platforms (META 0.41%) has a stock price of about $620 per share. However, by the end of 2026, I think it could be worth more than $1,000.
That's a bold call and would require Meta to set a new all-time high, but I think it can do it. In my opinion, it is the most unloved artificial intelligence (AI) hyperscaler, and its stock looks like a true bargain. If any one of management's major AI investments pans out, the business could boom, resulting in huge growth.
I think there's a better shot at Meta achieving this than the market gives it credit for, which creates a potentially huge investment opportunity.
Image source: Getty Images.
Meta's current business is booming
The company derives most of its money from its social media sites, like Facebook and Instagram. These platforms generate revenue through ad placement, which has been improved via some of the AI technology management has implemented.
This has led to soaring revenue, with sales rising 33% year over year during the first quarter. That's among the best levels of any big tech company, yet the stock trades at a deep discount to its peers.
From the standpoint of operating cash flow (a smart metric to use when capital expenditures are high and companies are seeing huge gains on investments), Meta's stock is far cheaper than its peers based on price to cash flow (CFO).
GOOG Price to CFO Per Share (TTM) data by YCharts; TTM = trailing 12 months.
There's a wide range of valuations there, but trading in the high teens on price-to-CFO would be a reasonable price tag. Even if it rises to 19 times operating cash flow, that would result in a 48% gain -- or a $920 stock price. That's enough to get to a new all-time high. However, Meta will also likely be announcing better results throughout 2026, so by the end of the year, that valuation could drive it to more than $1,000 per share.
NASDAQ: META
Key Data Points
But it's only going to achieve that valuation if the market believes in what Meta is doing. It can regain the market's favor if it launches an innovative personal AI tool that outperforms what's currently available.
CEO Mark Zuckerberg was confident that his company could deliver the first superintelligence AI to the masses, and if it can, it would easily warrant a higher valuation. Another way it could gain trust is by launching a product in its Reality Labs division that is a real game changer for society.
If Meta can do either of those things, its stock price is bound to rocket higher. Even if it doesn't do so in 2026, Meta Platforms is still a reasonably priced stock that's an excellent buy
