The Goldman Sachs Group Issues Pessimistic Forecast for Meta Platforms (NASDAQ:META) Stock Price

Key Points

• Goldman Sachs cut Meta’s price target from $860 to $762 but maintained a “buy” rating, implying roughly 3.6% upside from the prior close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $801.53, despite differing views on rising costs and the pace of AI monetization.
• Meta shares recently traded at $735.58, while the company’s latest quarterly revenue beat expectations but earnings per share fell short; insiders also sold approximately $101 million of stock during the last quarter.

Meta Platforms (NASDAQ:META - Get Free Report) had its target price decreased by analysts at The Goldman Sachs Group from $860.00 to $762.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the social networking company's stock. The Goldman Sachs Group's price objective would indicate a potential upside of 3.59% from the company's previous close.

A number of other research firms have also recently commented on META. Citigroup reissued an "outperform" rating on shares of Meta Platforms in a report on Thursday, September 24th. Mizuho set a $750.00 target price on shares of Meta Platforms and gave the stock an "outperform" rating in a report on Thursday, July 30th. Royal Bank Of Canada restated an "outperform" rating and set a $770.00 target price on shares of Meta Platforms in a research report on Thursday, September 24th. Citic Securities reduced their price target on shares of Meta Platforms from $770.00 to $718.00 and set a "buy" rating on the stock in a report on Monday, August 3rd. Finally, BNP Paribas Exane decreased their price target on shares of Meta Platforms from $955.00 to $855.00 and set an "outperform" rating on the stock in a research note on Thursday, July 30th. Three investment analysts have rated the stock with a Strong Buy rating, forty-five have given a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $801.53.

Meta Platforms Stock Performance

Shares of NASDAQ META traded down $26.92 during trading on Wednesday, reaching $735.58. 9,354,108 shares of the company traded hands, compared to its average volume of 17,472,775. The firm has a 50 day simple moving average of $647.53 and a 200-day simple moving average of $622.44. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $1.87 trillion, a PE ratio of 27.73, a P/E/G ratio of 1.29 and a beta of 1.19. Meta Platforms has a 52-week low of $520.26 and a 52-week high of $779.82.

Meta Platforms (NASDAQ:META - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing the consensus estimate 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%. Meta Platforms's revenue for the quarter was up 28.0% compared to the same quarter last year. During the same period in the previous year, the company earned $7.14 EPS. Equities research analysts anticipate that Meta Platforms will post 27.94 earnings per share for the current year.

Insider Buying and Selling at Meta Platforms

In related news, CTO Andrew Bosworth sold 7,848 shares of Meta Platforms stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total value of $4,379,184.00. Following the completion of the sale, the chief technology officer directly owned 828 shares in the company, valued at $462,024. The trade was a 90.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Aaron Anderson sold 3,240 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $618.06, for a total transaction of $2,002,514.40. Following the completion of the sale, the chief accounting officer directly owned 6,271 shares of the company's stock, valued at $3,875,854.26. The trade was a 34.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 148,222 shares of company stock valued at $101,033,627. 13.53% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Meta Platforms

A number of large investors have recently added to or reduced their stakes in the company. Auto Owners Insurance Co raised its holdings in Meta Platforms by 76,587.7% in the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company's stock worth $69,502,379,000 after purchasing an additional 105,154,977 shares during the period. State Street Corp lifted its position in Meta Platforms by 4.0% during the second quarter. State Street Corp now owns 92,033,963 shares of the social networking company's stock worth $51,841,811,000 after buying an additional 3,510,123 shares in the last quarter. Bank of America Corp DE raised its stake in Meta Platforms by 14.6% during the first quarter. Bank of America Corp DE now owns 21,038,035 shares of the social networking company's stock worth $12,036,491,000 after purchasing an additional 2,673,494 shares during the period. Invesco Ltd. raised its stake in Meta Platforms by 6.1% during the fourth quarter. Invesco Ltd. now owns 18,200,469 shares of the social networking company's stock worth $12,013,948,000 after purchasing an additional 1,046,715 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Meta Platforms by 1.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 12,836,063 shares of the social networking company's stock valued at $7,230,426,000 after purchasing an additional 162,909 shares during the last quarter. 79.91% of the stock is currently owned by institutional investors.

Key Headlines Impacting Meta Platforms

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

• Positive Sentiment: Meta’s Muse Wonder model scored 83.2% on the DualEntry Accounting AI Benchmark, tying for second among 57 models and ranking ahead of OpenAI and Google models tested. The result supports Meta’s claim that it is becoming more competitive in frontier AI. Meta Muse Wonder benchmark
• Positive Sentiment: Meta’s major advantage is distribution: Muse-based AI tools can reach billions of Facebook, Instagram and WhatsApp users. Analysts and commentators argue that this consumer scale could accelerate adoption, advertising improvements and longer-term AI monetization. Meta consumer-scale AI
• Positive Sentiment: Several firms remain bullish. Truist established a $1,000 price target, while Guggenheim raised its target to $850 from $700; UBS also increased its target. KeyCorp and Rosenblatt reiterated positive ratings, reflecting confidence in AI-enhanced advertising and future revenue opportunities. Truist Meta price target
• Neutral Sentiment: Wall Street remains divided despite widespread Buy ratings. Goldman Sachs lowered its target because of rising operating expenses, while UBS and Guggenheim raised theirs on anticipated AI revenue. This divergence highlights uncertainty about how quickly AI investments will translate into profits. Analyst views on Meta
• Negative Sentiment: Investors are concerned that Meta’s large AI and Superintelligence Lab investments could pressure free cash flow and compress the stock’s premium valuation, particularly if macroeconomic conditions weaken. The company is scheduled to report third-quarter results after the market close on October 21, making earnings and spending guidance the next major catalyst. Meta AI investment risks

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.

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