Citizens has reaffirmed its Outperform rating on Meta with a $900 price target, implying significant upside from the current share price of around $577.

The firm highlighted that Meta will fund the construction of seven new natural gas power plants as part of an expanded partnership with Entergy. These facilities will supply approximately 7GW of power to Meta’s Hyperion AI data center campus in Louisiana, with 5GW dedicated specifically to AI computing workloads.

This expansion builds on three gas-fired plants previously approved in 2025. The project also includes additional transmission infrastructure, battery storage systems, and nuclear energy upgrades to support long-term capacity. Meta continues to maintain an impressive 82% gross margin, while analysts have recently raised earnings forecasts.

Meta has also launched two new AI-enabled smart glasses:

• Ray-Ban Meta Blayzer Optics
• Ray-Ban Meta Scriber Optics

These models are optimized for prescription lenses, priced starting at $499, and are now available for pre-order, with official release scheduled for April 14 in the U.S. and select international markets.

In addition, Meta has begun testing a premium subscription service called Instagram Plus in select countries. The service offers exclusive features such as anonymous story viewing and access to replay view counts.

On the regulatory front, Meta is facing significant legal pressures. The company has been fined $375 million in New Mexico and approximately $2 million in a California case, reflecting an evolving regulatory landscape for social media platforms.

Morgan Stanley has also revised its target price for Meta from $825 to $775, citing concerns over the advertising market and regulatory risks. Despite these challenges, the firm maintains an Overweight rating on the stock.

Market Interpretation:

Meta continues to advance its in-house AI chip development and optimize server architecture to reduce long-term costs. Overall, the company is rapidly transitioning from a social media and advertising-driven business model to an AI and computing infrastructure-focused company. While long-term growth prospects are strengthening, driven by AI investments and infrastructure expansion, short-term uncertainties — including regulatory risks and capital expenditure pressures — remain key factors for investors to monitor.