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Meta stock gained on January 23 after Jefferies reaffirmed a buy rating, citing a valuation discount to Alphabet and a $60 billion run-rate from AI ad tools. Momentum also improved as Meta began a global rollout of ads on Threads, now topping 400 million monthly active users. Canadian investors are watching new monetization, AI execution, and expense discipline into Q4 results on January 28, 2026. Below, we break down the drivers, key data points, and practical takeaways.
Jefferies reiterated its buy rating on Meta stock and highlighted upside after the recent pullback, noting a discount to Alphabet and rapid progress in AI-driven ad performance. The firm also pointed to a path toward a $60 billion run-rate from new AI ad tools. Coverage today emphasized the upgraded outlook and improving sentiment source.
Meta started a global rollout of ads on Threads, which has surpassed 400 million monthly active users. Early ad formats give marketers another high-reach surface alongside Instagram and Facebook, a positive signal for revenue diversity. Reports tied the 4.7% move to this new monetization channel plus the Jefferies call source.
The buy thesis leans on valuation and product momentum. Jefferies cited Meta stock’s discount to Alphabet and expects AI ad tools to reach a $60 billion run-rate as automated targeting and creative tools scale. That thesis depends on continued gains in ad relevance and advertiser adoption, especially among small and mid-sized businesses.
Investors will focus on ad pricing, Reels monetization, AI infrastructure spending, and Reality Labs losses. Management commentary on Threads ads traction and AI-driven return on ad spend will be key. Q4 earnings are slated for January 28, 2026. Clear guidance on 2026 capex and share repurchases could be catalysts for Meta stock.
Meta Platforms (META) recently rose 4.7% on the news. Technically, RSI sits near 49.15, showing neutral momentum, while ADX at 28.2 signals a firm trend. Price is above the 50-day average of 638.60 USD but below the 200-day at 676.22 USD. Bollinger upper band near 670.68 USD marks resistance to watch for Meta stock.
Meta trades around 28.7x trailing EPS of 22.59 USD, with robust margins and ROE above 30%. Analyst coverage shows 49 Buy, 4 Hold, and 0 Sell ratings, indicating broad support. Growth remains strong, with 2024 EPS up about 62% year over year. This backdrop underpins the bullish case for Meta stock if spending stays disciplined.
Meta trades in USD on Nasdaq. Canadian investors should consider FX costs, currency swings, and potential withholding on dividends. Many brokerages offer USD accounts to reduce conversion fees. Position sizing should reflect U.S. tech exposure within a CAD-based portfolio, since currency moves can add or subtract from Meta stock returns.
We prefer staggered entries around key technical levels and earnings dates. Watch capex plans for AI infrastructure and ongoing Reality Labs losses. For advertisers in Canada, Threads ads create another test channel that could lift cross-platform performance. Use stop levels and revisit targets if Meta stock reclaims the 200-day average or breaks above recent resistance.
Jefferies’ buy call, a projected $60 billion run-rate from AI ad tools, and the global rollout of Threads ads are improving the outlook for Meta stock into the January 28 earnings report. The setup mixes solid fundamentals, constructive but neutral momentum, and clear catalysts. For Canadians, mind USD exposure, fees, and tax treatment. A simple plan is to scale in around support, reassess after guidance on 2026 capex, and track early Threads monetization data. If the 200-day average turns into support and ad pricing trends hold, that could confirm the next leg higher. This article is for information only, not investment advice.
Why did Meta stock rise on January 23?
Shares moved after Jefferies reiterated a buy rating, citing a valuation discount to Alphabet and progress in AI-powered ad tools. Sentiment also improved as Meta began a global rollout of ads on Threads, adding a fresh revenue lever with 400 million plus users. Together, these drivers lifted near-term confidence.
What does the Threads ads rollout mean for revenue?
Threads ads add a large, incremental surface beside Instagram and Facebook. If engagement stays high and ad formats mature, it can boost impressions and diversify spend. Early traction, paired with AI tools that improve targeting and creative, could support higher return on ad spend and steady monetization gains.
How do AI ad tools support the $60B run-rate thesis?
AI tools automate targeting, creative iteration, and budget optimization. Better relevance improves conversion rates, attracting more advertisers and budgets. Jefferies sees these improvements compounding at scale, creating a path to a $60 billion run-rate over time. Execution and advertiser adoption are the main variables to watch.
What should Canadian investors watch before Q4 earnings?
Focus on ad pricing trends, Reels monetization, Threads ads traction, and 2026 capex guidance. Track commentary on AI-driven return on ad spend and any updates on Reality Labs losses. Also consider USD exposure, as currency swings and conversion costs can impact CAD-denominated returns on Meta stock.
How are analysts positioned on Meta today?
Coverage skews positive, with 49 Buy, 4 Hold, and no Sell ratings in recent tallies. The case rests on strong margins, rapid EPS growth in 2024, and ongoing AI ad improvements. Risks include higher capex, regulatory issues, and execution on Threads monetization.
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