Meta Platforms' (META) "Buy" Rating Reiterated at TD Cowen

Key Points

• TD Cowen reaffirmed its “Buy” rating on Meta Platforms and set an $865 price target, implying approximately 19.8% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $791.86.
• Meta shares traded at $722.10, near the upper end of their 52-week range, with a market capitalization of about $1.84 trillion. The company’s latest quarterly revenue rose 28% year over year to $60.8 billion, though earnings per share of $6.18 missed consensus estimates.
• Insiders have been selling shares, including CEO Mark Zuckerberg, while institutional investors own approximately 79.9% of the company. Recent market focus also includes Meta’s heavy AI infrastructure spending, potential cash-flow pressure and regulatory risks involving teen safety.

Meta Platforms (NASDAQ:META - Get Free Report)'s stock had its "buy" rating reaffirmed by research analysts at TD Cowen in a research note issued on Thursday, Benzinga reports. They presently have a $865.00 price objective on the social networking company's stock. TD Cowen's price objective points to a potential upside of 19.79% from the company's previous close.

A number of other brokerages have also commented on META. Raymond James Financial increased their price target on shares of Meta Platforms from $650.00 to $860.00 and gave the stock a "strong-buy" rating in a report on Thursday, September 24th. Benchmark reissued a "hold" rating on shares of Meta Platforms in a report on Thursday, August 27th. Barclays decreased their price target on shares of Meta Platforms from $830.00 to $780.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. UBS Group reissued an "overweight" rating on shares of Meta Platforms in a report on Wednesday, September 23rd. Finally, Daiwa Securities Group decreased their price target on shares of Meta Platforms from $790.00 to $687.00 and set a "buy" rating on the stock in a report on Tuesday, August 4th. Three analysts have rated the stock with a Strong Buy rating, forty-four have assigned a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $791.86.

Meta Platforms Stock Performance

Shares of META stock traded up $0.79 during trading on Thursday, reaching $722.10. 3,036,500 shares of the company's stock traded hands, compared to its average volume of 17,407,635. The company has a market capitalization of $1.84 trillion, a P/E ratio of 27.21, a PEG ratio of 1.29 and a beta of 1.19. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. The firm's 50-day moving average is $634.11 and its 200 day moving average is $618.50. Meta Platforms has a 1 year low of $520.26 and a 1 year high of $779.82.

Meta Platforms (NASDAQ:META - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing analysts' consensus estimates of $7.19 by ($1.01). The business had revenue of $60.80 billion for the quarter, compared to analysts' expectations of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business's quarterly revenue was up 28.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $7.14 earnings per share. Equities research analysts expect that Meta Platforms will post 27.94 EPS for the current year.

Insider Activity at Meta Platforms

In related news, CEO Mark Zuckerberg sold 27,474 shares of the stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $777.44, for a total transaction of $21,359,386.56. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Andrew Bosworth sold 7,848 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total transaction of $4,379,184.00. Following the transaction, the chief technology officer directly owned 828 shares in the company, valued at approximately $462,024. This represents a 90.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 148,222 shares of company stock worth $101,033,627 in the last 90 days. Corporate insiders own 13.53% of the company's stock.

Institutional Investors Weigh In On Meta Platforms

Large investors have recently added to or reduced their stakes in the company. Watchman Group Inc. lifted its holdings in Meta Platforms by 0.3% in the first quarter. Watchman Group Inc. now owns 5,091 shares of the social networking company's stock valued at $2,913,000 after buying an additional 15 shares during the period. Penney Financial LLC raised its holdings in Meta Platforms by 3.9% in the first quarter. Penney Financial LLC now owns 399 shares of the social networking company's stock worth $228,000 after purchasing an additional 15 shares during the period. Barnes Pettey Financial Advisors LLC raised its holdings in Meta Platforms by 1.0% in the first quarter. Barnes Pettey Financial Advisors LLC now owns 1,519 shares of the social networking company's stock worth $869,000 after purchasing an additional 15 shares during the period. CWS Financial Advisors LLC raised its holdings in Meta Platforms by 1.7% in the first quarter. CWS Financial Advisors LLC now owns 985 shares of the social networking company's stock worth $564,000 after purchasing an additional 16 shares during the period. Finally, Tenzing Financial LLC raised its holdings in Meta Platforms by 1.3% in the second quarter. Tenzing Financial LLC now owns 1,210 shares of the social networking company's stock worth $726,000 after purchasing an additional 16 shares during the period. Institutional investors own 79.91% of the company's stock.

Key Headlines Impacting Meta Platforms

Here are the key news stories impacting Meta Platforms this week:

• Positive Sentiment: Muse expansion strengthens Meta’s AI narrative. Meta launched a dedicated iPad app for Muse shortly after its mobile debut, while the assistant has reached the top of app-store download charts. The company and Sierra also announced an open protocol, backed by businesses including Shopify, Stripe and Walmart, to let AI agents interact with merchants—potentially creating new commerce and advertising opportunities. Meta's Muse launches on iPad Meta and Sierra launch protocol
• Positive Sentiment: Analyst optimism remains elevated. Wells Fargo raised its price target to $1,000 from $796 and maintained an Overweight rating, citing enthusiasm for the Muse product cycle. A potential future public-cloud business has also been proposed as another way Meta could monetize its AI infrastructure. Wells Fargo raises Meta price target
• Neutral Sentiment: AI glasses offer long-term upside but execution is uncertain. Meta currently leads the smart-glasses category, and AI could make the devices a major consumer platform. However, the opportunity requires sustained adoption and a viable business model. AI Smart Glasses Will Be Huge
• Negative Sentiment: Florida’s legal action is the clearest near-term pressure. The state’s attorney general is seeking restrictions that could bar users under 14 and limit or disable engagement features such as infinite scroll for teens. Such changes could reduce user engagement, advertising inventory and the effectiveness of Meta’s core platforms. Florida AG seeks to ban users under 14
• Negative Sentiment: Investors are increasingly focused on AI spending and cash flow. Reports say Meta is burning cash at a historically high rate to build AI infrastructure, raising concerns about when those investments will generate returns. Meta also faces a potentially significant New Mexico penalty related to youth-safety litigation. AI infrastructure and cash flow
• Negative Sentiment: COO Javier Olivan sold shares. The sales were conducted under a pre-arranged Rule 10b5-1 plan, limiting their significance, but the transactions may still add modestly to investor caution after Meta’s strong run. Meta insider transaction filing

Meta Platforms Company Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company operates a global family of apps that includes Facebook, Instagram, Messenger, WhatsApp and Threads, enabling users to connect, communicate, share content and discover communities.

Meta generates most of its business through digital advertising displayed across its platforms. Its products serve individuals, creators, businesses and organizations in markets around the world, while its advertising tools help businesses reach audiences based on factors such as interests, activity and demographics.

Through its Reality Labs division, Meta develops virtual and augmented reality hardware, software and services, including the Meta Quest line of headsets and related experiences.