BofA Securities analyst Justin Post has reaffirmed a Buy rating on Meta Platforms with a price target of $835, betting that the company’s aggressive AI strategy will continue to translate into real revenue growth. The call comes after Meta posted its strongest quarterly performance in years, and just as the company begins experimenting with entirely new revenue streams powered by artificial intelligence.

The numbers behind the conviction

Meta’s Q1 2026 revenue grew 33% year-over-year, marking the company’s best quarterly growth rate since 2021. Meta’s machine learning improvements to its advertising systems have produced measurable engagement lifts in the range of 3% to 5%.

To keep that flywheel spinning, Meta raised its 2026 capital expenditure guidance to between $125 billion and $145 billion. That’s up from the previous range of $115 billion to $135 billion.

Reality Labs, Meta’s hardware and virtual reality division, contributed $402 million in revenue during Q1.

The subscription play

The company began testing paid AI subscription models in late May 2026, with pricing tiers set at $7.99 and $19.99 per month.

Analyst estimates suggest these AI subscription models could generate up to $3 billion in revenue by 2027. That figure represents a revenue stream that doesn’t depend on advertising, reducing the risk profile of the stock.

The strategic pivot in context

Meta’s journey from metaverse evangelist to AI-first company has been one of the more dramatic corporate pivots in recent tech history. The analyst consensus on META remains at Moderate to Strong Buy across multiple firms.