As the artificial intelligence (AI) race accelerates toward advanced machine intelligence (AMI), tech giants are pushing boundaries to create agents that can reason more like humans. A key piece of this puzzle is physical reasoning, essential for AI systems to navigate and act within the real world.

Meta Platforms (META) has stepped into this frontier with the launch earlier in June of its Meta Video Joint Embedding Predictive Architecture 2 (V-JEPA 2), a powerful video-based world model that helps machines anticipate how the physical world behaves. Unlike language-only models, V-JEPA 2 learns from video data to predict object dynamics and human interactions using latent-space simulation. It allows robots to “think before they act,” performing tasks like picking up and placing objects in unfamiliar environments.

Meta’s bold move also includes new benchmarks to accelerate physical reasoning research, plus, a reported $14.3 billion investment in Scale AI, signaling CEO Mark Zuckerberg’s intent to anchor AI deeply into Meta’s ecosystem. 

But does this push into physical AI make META stock a buy, or should investors wait on the sidelines?

About Meta Stock

Meta Platforms (META) has grown from a college social network into a global tech powerhouse, redefining how billions of people communicate. The California-based tech titan now oversees a sprawling digital empire, anchored by social media giants such as Instagram, WhatsApp, and Messenger, and is charging ahead into the future with ambitious bets in AI, augmented reality, and the metaverse. What began with a newsfeed has evolved into a full-scale push to shape how humans and machines interact in the next era of connectivity. 

That future-facing focus seems to be paying off. Meta's shares have surged more than 700% over the past decade.

In 2025, META has so far delivered a standout 21% YTD gain, and over the past year, the stock has skyrocketed 38.8%, handily beating not just some of its  tech peers, which flinched under pressure, but also the S&P 500 Index’s ($SPX) returns. The surge was fueled by rising ad revenues, deeper AI integration, and investor faith in its metaverse roadmap. 

Wall Street Cheers as Meta Rockets Past Q1 Estimates

Meta’s Q1 2025 earnings report, released on April 30, came out swinging, crushing expectations and fueling a 4.2% jump in the stock the very next day. Revenue climbed 16% year over year to $42.3 billion, beating Wall Street’s estimate of $41.4 billion. But the real knockout punch came from EPS, soaring 37% to $6.43, 23.2% higher than forecasts.

Meta’s ad engine is still humming, with impressions up 5% and the average price per ad jumping 10%. User growth remains rock solid too, as, in March, daily active users across the company’s app family reached 3.4 billion, up 6% year-over-year.

Meta tightened the screws on costs and it paid off. Its operating income surged 27% to $17.56 billion, lifting margins to 41%. Plus, with $70.2 billion in cash and marketable securities and just $28.8 billion in long-term debt, Meta heads deeper into 2025 with a strong balance sheet and momentum on its side.

CEO Mark Zuckerberg highlighted AI as the driving force behind the company’s renewed energy, particularly Meta AI and its growing line of smart glasses. Meta AI has already hit nearly 1 billion monthly users. 

But the real story may be what’s next. Looking ahead, management anticipates Q2 revenue to be between $42.5 billion and $45.5 billion, signaling continued strength. Plus, with capex now projected to be between $64 billion and $72 billion for 2025, Meta is going full throttle into AI infrastructure and next-gen computing. 

Analysts monitoring the social media company project its revenue for Q2 to be around $44.5 billion, and EPS for the quarter is anticipated to rise by 11.4% year over year to $5.75. Looking further ahead to fiscal 2025, the bottom line is expected to climb to $25.25 per share, up 5.8% annually.

Meta’s V-JEPA 2 Redefines AI Robotics Potential

AI-driven robotics and autonomous systems are reshaping industries - from logistics to consumer tech - with speed and adaptability becoming the new gold standard. Meta’s V-JEPA 2 steps into this evolving space as a potentially disruptive force. 

What truly elevates V-JEPA 2, however, is Meta’s decision to open-source the framework. By releasing code, benchmarks, and training data, Meta is fostering a collaborative ecosystem, one that could fuel innovation far beyond its own walls. Yet this openness is a double-edged sword. It lowers barriers for startups but also gives its competitors access to refine their systems faster.

For Meta, the model is a strategic leap, but long-term success depends on how well it is integrated, scaled, and monetized.

What Do Analysts Expect for Meta Stock?

Meta’s ambition to dominate AI just got Wall Street’s nod. Recently, Bank of America hiked its price target to $765, citing easing macroeconomic worries and expanding valuations. Buzz around Meta’s roughly $14.3 billion Scale AI investment only adds fuel, signaling Zuckerberg’s intent is to lead the AI race, not follow.

Wall Street has got its foot on the gas for Meta. The stock holds a “Strong Buy” consensus, signaling full-speed-ahead confidence in its trajectory. Of the 54 analysts offering recommendations, 45 are giving it a solid “Strong Buy,” three advise a “Moderate Buy,” four suggest a “Hold,” and only two advocate a “Strong Sell.”

META’s average analyst price target of $711,88 implies modest 2.4% potential upside. However, the Street-high price target of $935 suggests that the stock can still rally as much as 32% from here.