JPMorgan downgrades Meta to Neutral from Overweight, cuts target to $725

JPMorgan's Doug Anmuth moved Meta to Neutral from Overweight and lowered his price target to $725 from $825, citing rising AI capex and a harder path to returns beyond advertising. He flagged free cash flow turning negative in 2026 and 2027 on his projections. Other analysts reported on the same day, including Barclays, Cantor Fitzgerald and TD Cowen, trimmed targets but kept bullish ratings.

• Rating cut from Overweight to Neutral; target $725 from $825
• Concern: full-stack AI competition and returns on capex beyond advertising
• His projections: negative free cash flow of about $4B in 2026 and $24B in 2027
• FactSet consensus averaged a buy rating with a $843 mean target