Meta Stock Could Hit $800 This Year -- And It All Begins on Sept. 23

Citi is optimistic about Meta Platforms (META) and has assigned a Buy rating, maintaining their $800 price target. The company's Connect event on September 23 is seen as a key catalyst for the stock, with analysts expecting updates on Meta's new AI products, hardware, and the metaverse. The target suggests a potential 19% upside.

Meta spends heavily on AI, with capital expenditures up to $145 billion this year, and free cash flow recently dropping to $784 million, causing investor concern. Despite this, Meta's stock is considered reasonably valued for its size, with a forward P/E of 21.33x and a price-to-sales ratio in line with previous years. Investors are still waiting for proof that Meta's AI spending is boosting advertising revenue.

Meta's Connect conference in September is seen as crucial to determine if the company's AI investments are paying off.