Morgan Stanley analyst identifies four emerging Meta products that could each add $1–$3 to 2028 earnings per share

Morgan Stanley analyst Brian Nowak reiterated Meta's 'top pick' status and maintained a $775 price target, representing roughly 30% upside from current levels. Nowak argued that four nascent product offerings could drive multiple expansion while addressing investor skepticism about the company's projected $380 billion capital expenditure plan for 2027 and 2028.

The four catalysts are: a search tool integrated within Meta AI (estimated to generate over $10 billion in annual revenue if it retains 1 billion users and monetizes 10% of daily queries); tiered subscription packages for 3.5 billion daily active users (potentially adding $2 to earnings per share); improvements to the core advertising engine through GPU-enabled machine learning (with every 1% upside to 2028 ad revenues injecting $3.5 billion into the business); and a 'Neocloud safety net' allowing Meta to lease unutilized compute capacity to external enterprise clients (providing minimum 8% upside to 2028 earnings if one gigawatt is leased at standard market rates).

Meta stock is down 15% over the past year, underperforming the S&P 500's 23% gain during the same period. The stock dropped 5.5% on Friday following a Financial Times report that the company is considering a major equity raise to fund its AI infrastructure buildout.