Investors Excited by Meta's AI Ad Gains as Analysts Lift Targets to $835

Meta shares linger ~10% below pre-earnings levels through May 8, 2026, but investors grow excited over AI-driven ad pricing (+12% YoY) and engagement boosting Q1 revenue to $56.3B (+33% YoY). The slump began March 19 near $600 on $115-135B capex guidance and layoff rumors, intensifying post-April 29 earnings despite beats ($26.8B net income +61%, adjusted EPS $7.31) due to capex hike to $125-145B, $4B Reality Labs loss, and $58-61B Q2 guide. A $8.03B tax benefit inflated reported EPS to $10.44, yet BofA ($835) and Barclays ($830) frame AI tailwinds as Strong Buy catalysts.