Citi Raises Meta Price Target as Wells Fargo Cuts Its Target

Citi raised its Meta price target while Wells Fargo lowered its own on Oct. 22, as the shares fell and the company’s third-quarter capital expenditures exceeded operating cash flow.

Citi analyst Ronald Josey raised his target to $905 from $895 and kept a Buy rating. Wells Fargo analyst Ken Gawrelski cut his target to $995 from $1,000 and maintained an Overweight rating.

The target updates came during a declining session. Meta shares later closed at $648.83, down 6.98% from the previous close.

Meta’s third-quarter revenue rose 26% year over year to $64.60 billion. Costs and expenses increased 68% to $51.61 billion. Advertising also grew: impressions across Meta’s Family of Apps rose 10%, while the average price per ad increased 14%.

Operating cash flow was $32.79 billion for the quarter. Capital expenditures, including finance-lease principal payments, totaled $34.91 billion, leaving free cash flow at negative $2.12 billion.

Meta raised the low end of its 2026 capital-expenditure forecast to $135 billion from $130 billion and kept the high end at $145 billion. The range includes finance-lease principal payments. The company said it was still developing its 2027 budget and capacity plans and expected to keep investing in its core business and artificial intelligence initiatives.

Diluted earnings per share were $3.83. Meta said earnings per share would have been $7.40 without a $9.89 billion charge related to its agreement with U.S. state attorneys general.

“Our investments are paying off, the core business is strong, and we're seeing velocity across the board,” Meta founder and CEO Mark Zuckerberg said.