Meta Stock Finds Momentum Ahead of Earnings Report

Shares of Meta Platforms are experiencing a notable rebound after months of pressure, driven by investor concerns over soaring artificial intelligence infrastructure costs. A shift in sentiment emerged on Thursday, fueled by an optimistic analysis from Jefferies and the confirmed launch date for advertisements on Threads. This raises a critical question for the market: is the recent correction over, or merely paused?

Providing a tangible operational boost, Meta has announced it will begin rolling out advertisements on its text-based platform, Threads, globally starting next week, in late January 2026. The platform now boasts over 400 million monthly active users and has surpassed competitor X (formerly Twitter) in daily mobile usage within key markets.

This move to introduce image, video, and carousel ads represents a strategic pivot from pure user growth to active monetization. Market observers view this as the potential opening of a significant new revenue stream for the social media giant in upcoming quarters.

Analyst Calls Stock a "Bargain"

The positive operational news was complemented by a bullish research note from Jefferies analyst Brent Thill, a key driver behind the stock's advance of over 5% on Thursday. Thill reaffirmed his Buy rating, attaching an ambitious price target of $910. This implies an upside potential of more than 40% from current levels.

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

The analyst described Meta's equity as a "bargain" compared to its peers in the "Magnificent 7" cohort. He noted that the shares have corrected significantly since their 52-week high in August 2025, creating an attractive risk-reward profile. His confidence rests on three pillars:
* AI Efficiency Payoff: The company's massive investments are starting to yield returns through improved ad performance.
* WhatsApp's Potential: The messaging service could generate annual revenue of $36 billion by 2029.
* Valuation Appeal: A price-to-earnings ratio that appears favorable compared to rivals like Alphabet.

Technical Rebound in Play

The confluence of these developments has triggered a technical recovery. After six months of pressure fueled by fears of infrastructure investments reaching up to $600 billion, the stock has now reclaimed key chart levels. Technically-focused investors interpret the move above the 200-day moving average as a bullish signal and a potential conclusion to the recent consolidation phase.

The Ultimate Test: Forthcoming Earnings

Despite the current optimism, the company faces a crucial test. On Wednesday, January 28, 2026, Meta is scheduled to release its fourth-quarter financial results. This report will provide investors with concrete evidence on whether the theoretical opportunities presented by AI and Threads are translating into real financial performance, and if management can successfully alleviate lingering concerns about expenditure.