Meta Platforms Stock Soars on Strong Earnings and AI Investment Optimism
Meta Platforms Inc. (META:Nasdaq) experienced a significant surge in investor confidence this week, with its stock price jumping approximately 10% following the release of its quarterly earnings report. The social media giant reported a notable increase in advertising revenue and provided a robust forecast for the upcoming period, which helped alleviate concerns about its substantial capital expenditures in artificial intelligence.
Analyst Upgrades and AI 'Green Shoots'
BMO Capital Markets analyst Brian Pitz raised his price target for Meta to US$730 from US$710, highlighting what he described as a strong fourth-quarter performance. Revenue and operating income exceeded consensus estimates by 2.5% and 2.9%, respectively. For the first quarter of 2026, Meta anticipates revenue to come in approximately 7% above consensus expectations.
Importantly, Meta is beginning to see tangible benefits from its massive AI investments, Pitz noted in his analysis. The company has committed approximately US$132 billion to capital expenditure in 2026, with these investments already improving recommendation models and driving increased user engagement and monetization.
This positive development marks a turnaround from late last year when Meta shares declined nearly 22% between October and November as investors questioned the company's AI spending strategy, estimated at US$72 billion for 2025. The 12-month consensus price target for Meta among 67 analysts stands at US$852.16, according to Bloomberg data, with the stock closing at US$716.50.
Precious Metals Plunge Following Trump's Federal Reserve Pick
In a separate market development, gold and silver prices experienced dramatic declines on Friday, with bullion falling nearly 10% to below US$5,000 per ounce and silver plummeting 26%. This significant drop occurred as the so-called debasement trade unwound following former President Donald Trump's announcement that he would nominate Kevin Warsh to replace Jerome Powell as chair of the United States Federal Reserve.
Market Reaction to Fed Independence Concerns
David Rosenberg, chief executive of Rosenberg Research & Associates Inc., observed that the market reaction points to concerns about Federal Reserve independence regarding potential easing measures. Investors had feared Trump might select a successor who would align closely with his desire for additional interest rate cuts, potentially compromising the Fed's traditional independence.
However, initial assessments of Warsh's nomination described him as having hawkish tendencies, suggesting he might resist aggressive rate reductions. This perception contributed to a rebound in the U.S. dollar. Despite the dramatic price movements, Rosenberg noted that the fundamental factors driving precious metals appreciation haven't substantially changed, citing rising concerns about global market fragmentation and inventory warehousing by major economies.
Raymond James Updates Canadian Energy Sector Outlook
As Canadian energy companies prepare to report fourth-quarter earnings, analysts at Raymond James Global Research have revised their outlooks based on updated commodity price forecasts. The research team, including Michael Barth, Luke Davis, Justin Jenkins, Luke Konschuch, and Brett Keller, lowered their price targets for West Texas Intermediate and Western Canadian Select by 8% and 10%, respectively, for the fourth quarter of 2025.
Energy Stock Rankings and Price Targets
The analysts maintained their established pecking order for Canadian energy shares, with specific recommendations and price targets:
- Cenovus Energy Inc. (CVE:TSX) remains their top pick with a price target of $30 and a strong buy rating, though they expect the company to focus on integrating MEG Energy following its acquisition.
- Suncor Energy Inc. (SU:TSX) follows as their second choice with a price target of $73, noting positive developments in its in situ business ahead of the March Investor Day.
- Canadian Natural Resources Ltd. (CNQ:TSX) receives a price target of $53, with analysts monitoring volume performance and capital allocation.
- Imperial Oil Ltd. maintains an underperform rating with a price target of $106, viewed as relatively expensive compared to peers.
The analysts noted that negative estimate revisions for producers this quarter are largely driven by these revised commodity price forecasts, with specific attention to how companies manage costs and capital allocation in the current market environment.
