MS breaks down 4 META major engines, each capable of contributing $1–3 to '28 EPS

Meme_Tiger
06-04

$Meta Platforms, Inc.(META)$ (Morgan Stanley Overweight, target price $775 (new))

Meta Platforms (META) — this forward-looking strategy research report was published on June 2, 2026. Morgan Stanley named META its Top Pick, with a target price of 775, implying roughly ~30% upside versus the current price of 600.47 📈 Closed up at 622.98 (+4.2%, previous close 597.63)

The market currently assigns META roughly a 30% valuation discount relative to $Alphabet(GOOGL)$ (NTM P/E discount of about -8.7x, deviating nearly 2 standard deviations from the historical average of -0.4x). Morgan Stanley believes this discount severely underestimates the moat the company is building.

Google Stays Strong Amid Chip Carnage; Buffett's $10B Bet: New AI Safe Haven?
Alphabet slipped just 0.95% on Friday, making it the most resilient mega-cap tech name during the semiconductor rout. Berkshire Hathaway was reportedly disclosed as having built an approximately $10 billion position in Google, while Alphabet's in-house AI chips (TPUs) reduce its dependence on NVIDIA — leading markets to treat the stock as a safe haven amid AI hardware deleveraging. The combination of cash flow, proprietary silicon, and cloud scale is drawing capital rotating out of crowded AI hardware trades. As money exits AI hardware, will you rotate into Google?
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