Meta Platforms, Inc. $META is Wedbush Fund Advisers LLC's 10th Largest Position

Key Points

• Wedbush Fund Advisers increased its Meta position by 31% in the second quarter to 89,374 shares valued at approximately $50.3 million, making Meta its 10th-largest holding and representing 4.5% of its portfolio.
• Meta’s AI efforts are attracting investor interest, with its Muse agent quickly reaching the top of Apple’s U.S. free-app chart and internally developed MTIA chips potentially saving about $8.5 billion in 2027.
• Despite a “Moderate Buy” analyst consensus and strong revenue growth, concerns include a sharp decline in free cash flow from rising AI infrastructure spending, legal and reputational risks, profit-taking after a recent rally, and continued insider selling.

Wedbush Fund Advisers LLC grew its position in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 31.0% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 89,374 shares of the social networking company's stock after buying an additional 21,133 shares during the quarter. Meta Platforms accounts for approximately 4.5% of Wedbush Fund Advisers LLC's holdings, making the stock its 10th largest position. Wedbush Fund Advisers LLC's holdings in Meta Platforms were worth $50,343,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. RHL Group LLC bought a new position in Meta Platforms in the fourth quarter valued at about $28,000. Advantage Trust Co bought a new stake in shares of Meta Platforms during the 2nd quarter valued at about $28,000. Niles Investment Management LLC purchased a new stake in shares of Meta Platforms during the 4th quarter valued at about $29,000. Axiom Investment Management LLC purchased a new stake in shares of Meta Platforms during the 1st quarter valued at about $36,000. Finally, Bayban lifted its stake in shares of Meta Platforms by 100.0% in the 1st quarter. Bayban now owns 70 shares of the social networking company's stock worth $40,000 after purchasing an additional 35 shares during the period. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta’s Muse personal AI agent reached No. 1 on Apple’s U.S. free-app chart, surpassing ChatGPT roughly one week after launch. Its ability to handle shopping, bookings, email and phone calls could give Meta a significant consumer-AI growth platform and strengthen the case for future subscriptions or commerce revenue. Meta's Muse tops Apple's US free app chart
• Positive Sentiment: Bank of America said Meta’s internally developed MTIA AI chips could save approximately $8.5 billion in 2027 by reducing reliance on third-party processors. Custom silicon could improve the economics of Meta’s expanding AI infrastructure over time. Meta Can Save $8.5 Billion in 2027 by Using Its Own MTIA Chips
• Positive Sentiment: Analyst support and upcoming product announcements remain potential catalysts. Rosenblatt reiterated a Buy rating, while investors are looking ahead to Meta Connect on September 23 for additional AI, glasses and subscription details. Meta Earns Buy Rating from Rosenblatt Securities
• Neutral Sentiment: Muse’s early popularity is encouraging, but analysts disagree on its financial impact. The generous free tier may accelerate adoption while delaying revenue and increasing computing costs; consumer distrust of Meta and the need to provide sensitive account data could also limit paid conversion. Meta’s Muse Agent Has Wall Street Divided on Its AI Potential
• Negative Sentiment: Investors are taking profits after META rose roughly 23%–24% over the past month. Valuation and expectations have risen quickly, increasing sensitivity to any evidence that AI spending will not generate near-term earnings growth.
• Negative Sentiment: Meta’s AI investment program is placing significant pressure on cash flow. Articles highlighted a more than 90% decline in free cash flow as capital expenditures rise, raising concerns about the payback period for data centers, chips and other infrastructure. Meta Versus Oracle: AI Capex Payback Velocity
• Negative Sentiment: Legal and reputational pressure is increasing. A German court held Meta liable for fraudulent third-party ads, while regulators and its Oversight Board criticized safeguards against deepfakes and nonconsensual filming involving its smart glasses. These issues could increase compliance costs and threaten user trust. German Court Rules Meta Liable for Fake Ads
• Negative Sentiment: Chief Product Officer Christopher Cox sold 20,000 shares worth approximately $13.5 million under a pre-arranged Rule 10b5-1 plan. The planned nature reduces the signal, but the sale may still weigh modestly on sentiment. SEC Insider Trading Filing

Meta Platforms Price Performance

NASDAQ META opened at $665.75 on Friday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. Meta Platforms, Inc. has a 12 month low of $520.26 and a 12 month high of $790.80. The stock has a market cap of $1.70 trillion, a price-to-earnings ratio of 25.08, a PEG ratio of 1.16 and a beta of 1.25. The company's 50 day moving average is $606.33 and its two-hundred day moving average is $609.79.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing analysts' consensus estimates of $7.19 by ($1.01). The firm had revenue of $60.80 billion during the quarter, compared to the consensus estimate of $60.22 billion. Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The business's revenue for the quarter was up 28.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $7.14 earnings per share. As a group, research analysts anticipate that Meta Platforms, Inc. will post 27.93 earnings per share for the current year.

Meta Platforms Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Monday, September 21st will be paid a dividend of $0.525 per share. The ex-dividend date is Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. Meta Platforms's payout ratio is 7.91%.

Insider Buying and Selling

In other news, CFO Susan J. Li sold 9,196 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $550.61, for a total value of $5,063,409.56. Following the transaction, the chief financial officer directly owned 13,186 shares in the company, valued at $7,260,343.46. The trade was a 41.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Aaron Anderson sold 3,240 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $618.06, for a total value of $2,002,514.40. Following the completion of the transaction, the chief accounting officer owned 6,271 shares in the company, valued at $3,875,854.26. The trade was a 34.07% decrease in their ownership of the stock. 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. Insiders have sold a total of 81,758 shares of company stock worth $51,214,020 in the last three months. Corporate insiders own 13.53% of the company's stock.

Analyst Ratings Changes

A number of equities analysts recently issued reports on META shares. Monness Crespi & Hardt dropped their price objective on shares of Meta Platforms from $890.00 to $730.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Weiss Ratings downgraded shares of Meta Platforms from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 26th. Wedbush lifted their price target on shares of Meta Platforms from $595.00 to $650.00 and gave the stock a "neutral" rating in a research note on Friday, September 11th. Barclays reduced their price objective on Meta Platforms from $830.00 to $780.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $800.00 target price on shares of Meta Platforms in a report on Thursday, July 30th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, Meta Platforms currently has a consensus rating of "Moderate Buy" and an average price target of $788.88.

About Meta Platforms

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company's principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.

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