Morgan Stanley analyst sees Meta's massive AI spending and emerging search business as reasons to make it a top mega-cap pick, with a $775 price target.

What happened: Morgan Stanley analyst Brian Nowak reiterated on June 6 that Meta is being overlooked by Wall Street, citing the company's planned $380 billion（約61兆円） capital expenditure for 2027 and 2028 and its potential to launch products that could add $1 to $3 to earnings per share in 2028.

Why it matters: Nowak expects Meta's search tool, integrated into Meta AI, could become a multibillion-dollar revenue source if it retains 1 billion users and monetizes just 10% of daily queries—potentially generating over $10 billion（約1.6兆円） in annual revenue. The company is already rolling out tiered subscription packages to pursue higher-margin revenue streams.

What to watch: Nowak reiterated a $775 price target for Meta Platforms, Inc. (NASDAQ:META), positioning it as a top pick among mega-cap stocks.