META Stock News: How will OpenAI Ads impact competitor like Meta?

New York, 02 February 2026: Meta Platforms (NASDAQ: META) is the world’s biggest social media company, running platforms like Facebook, Instagram, WhatsApp and Threads. Today, 02 February 2026, Meta’s stock price is $716.50, down 2.95%. Still, recent earnings reports have given the stock a big boost. In the fourth quarter, the company beat expectations with revenue of $59.89bn and EPS of $8.88. For 2026, the company expects $115-$135bn in capex, reflecting spending on AI and infrastructure.

US market analysts have given a positive opinion on the stock, with an average price target of $847.98 and a “moderate buy” rating. This article dives into today’s news on Meta stock, analysts’ views and the key points.

Meta Platforms has made a big jump in the stock market following its recent fourth-quarter earnings results. The company reported $59.89 billion in revenue compared to the expected $58.59 billion and $8.88 EPS versus $8.23 EPS. This pushed the stock price up 10%, exciting investors. Wall Street analysts reacted positively, with Canter Fitzgerald raising the price target to $860 and Roth MKM keeping a “buy” rating.

For 2026, the company has projected $115 to $135 billion in capex to develop AI models like LLaMA 4. Although these costs are high, the company’s AI-powered ad engine Advantage+ has reached a $60 billion annual run rate, driving 98.6% of ad revenue. Analysts believe these expenses are a foundation for future growth, which could keep the stock’s momentum going. Still, some analysts warn that high capex could put pressure on margins.

Ex-Meta engineer says he asked for a demotion, but that was easier said than done

A former Meta engineer said that he requested a demotion himself, but actually getting it was really tough. This case sheds light on the company’s internal policies, where employees struggle to get a demotion or role change. The engineer said he wanted a role with less responsibility, but the company’s processes were complicated, making it ‘easier said than done.’ This raises questions about Meta’s work culture, especially in the high-pressure environment of AI and tech.

The news has had a slight negative impact on the stock, but analysts believe it won’t affect the company’s financial performance in the long run. Meta has taken steps to improve employee management, including AI-based HR tools.

Meta Platforms: Stock Surges on Blowout Earnings as Wall Street Chases Higher Targets

US market analysts have expressed a positive opinion on Meta stock. Out of 52 analysts, 45 have given a ‘buy’ rating, with an average price target of $847.98, suggesting an 18.6% upside. Barton Crockett of Rosenblatt has a price target of $1117, indicating a 77% increase.

Analysts from Motley Fool and Yahoo Finance noted that Meta’s AI investments and advertising growth strengthen the stock. Zacks Investment Research has rated Meta as ‘attractive’, forecasting $249.4 billion in revenue for 2026. However, some analysts are concerned about high capex and losses from Reality Labs. Overall, analysts believe Meta will outperform the market in 2026, with a P/E ratio of 24, which is cheap among mega-cap AI stocks.

Meta CEO Mark Zuckerberg dodged Wall Street’s AI questions, and called it a long game

Meta CEO Mark Zuckerberg recently dodged AI-related questions on Wall Street during an earnings call and described AI development as a ‘long game’. He mentioned that AI is the company’s long-term strategy, requiring significant investment. The estimated $115-135 billion capex for 2026 is in line with this, including a $2 billion acquisition of MANS. Instead of answering AI questions directly, Zuckerberg focused on the company’s advertising models and user engagement.

Analysts have had mixed reactions; some view it positively, as AI investment will give the company a competitive edge, while others expressed concern over the high spending. Still, Meta seeing AI as a ‘long game’ shows that the company is focusing on future growth rather than immediate profits.

How will OpenAI Ads impact competitors like Google and Meta?

OpenAI starting ads could have a big impact on competitors like Google and Meta. By including ads in OpenAI’s ChatGPT and other AI tools, they provide advertisers a new platform, which could put pressure on Google and Meta’s ad revenue. For Meta, which relies on ads for 98% of its revenue, this is a challenge. Since OpenAI’s ads are AI-based, they could be more targeted and effective, potentially drawing advertisers away from Meta and Google.

Still, Meta has developed its own AI ad tools like GEM and Sequence Learning Architecture, which helps them handle the competition. Analysts estimate that these effects could be seen by 2026, with Meta’s revenue growth staying around 24% to 26%, but its market share could shrink due to OpenAI’s growth. Meta plans to increase ads on Threads and WhatsApp, which could reduce this impact.

Meta India’s unit net profit grows 28.3% to Rs 647.5 crore in FY25; Gross ad revenue up 29%

Meta India has increased its net profit by 28.3% to Rs 647.5 crore in FY25, while total ad revenue grew by 29%. These results reflect strong growth for Meta in India, with an increase in both user base and ad spend. India is a key market for Meta, with millions of users on Facebook and Instagram. This growth contributes to the company’s global revenue, especially in the Asia-Pacific region. However, regulatory challenges and competition in India could rise in 2026, so Meta is focusing on local AI and advertising strategies. These results have a positive impact on Meta’s stock, with analysts calling India’s growth a ‘key driver’.