Meta’s Valuation Crossroads: Institutional Bets Diverge as $2 Trillion Looms

Meta Platforms finds itself at a critical juncture, with market experts divided on its immediate trajectory. The company is viewed as a frontrunner to become the next "new" entrant to surpass a $2 trillion market capitalization. However, this bullish long-term outlook contrasts sharply with the recent, mixed actions of major institutional investors, creating a complex picture for the stock.

Recent portfolio disclosures for Q3 2025 reveal a clear split in strategy among heavyweight investors. On one side, firms are building significant stakes. Swedbank AB increased its holding by 1.0%, bringing its total position to over 3.4 million shares. This investment, valued at $2.56 billion, now stands as the seventh-largest in Swedbank's portfolio. Global X Japan was even more aggressive, boosting its exposure by 6.5%.

Conversely, other institutions have been scaling back. Optas LLC slashed its Meta position by more than half, while Davenport & Co. reduced its holdings by 17.5%. This profit-taking extends to corporate insiders. Over the past 90 days, executives including CFO Susan Li and COO Javier Olivan have sold shares worth a combined $26.36 million.

Operational Momentum and Regulatory Hurdles

Beneath these financial maneuvers, Meta's operational story provides context for the optimism. The company's advertising engine has demonstrated remarkable resilience, delivering robust growth for eight consecutive quarters. Both ad impressions and the average price per ad have shown consistent upward momentum. For Q3 2025, Meta reported adjusted earnings per share (EPS) jumping 20% year-over-year to $7.25, on revenue of $51.24 billion—a 26.2% increase that exceeded expectations.

Strategically, a collaboration with Google on the "TorchTPU" initiative aims to optimize PyTorch software for Google's TPU chips. This move to ease platform switching for developers could strengthen Meta's standing within the competitive AI hardware ecosystem.

Should investors sell immediately? Or is it worth buying Meta?

However, regulatory challenges persist, particularly in Europe. Italian antitrust authorities recently blocked a WhatsApp update, alleging it could disadvantage competing AI chatbots. This intervention highlights the continued scrutiny Meta faces regarding its market power in the region.

The Path to a $2 Trillion Valuation

The debate centers on whether Meta's current momentum justifies a leap to a $2 trillion valuation, a milestone it is seen contesting with peers like Tesla and Broadcom. Proponents argue that, trading at a price-to-earnings (P/E) ratio of approximately 29, Meta's valuation appears moderate compared to other AI-focused technology stocks.

Analyst sentiment currently consolidates around a "Moderate Buy" rating, with a consensus price target of $820, suggesting significant potential upside from recent trading levels.

The Next Catalyst: Forthcoming Earnings

All eyes now turn to Meta's next quarterly report, scheduled for January 28, 2026. The market anticipates an EPS of $8.22. This release will be pivotal in assessing whether the company's financial momentum can be sustained. The results will ultimately provide the clearest signal yet on the feasibility of the $2 trillion forecast, determining if Meta is truly on the cusp of a historic revaluation or if investor caution is warranted.