Meta Platforms, Inc. $META is Whalen Wealth Management Inc.'s 8th Largest Position

Key Points

• Whalen Wealth Management increased its Meta stake by 20.4% in the second quarter to 7,809 shares valued at approximately $4.4 million, making Meta its eighth-largest portfolio position. Institutional investors collectively own about 79.9% of Meta’s stock.
• Meta reported quarterly revenue of $60.8 billion, up 28% year over year, but earnings per share of $6.18 missed the $7.19 consensus estimate. The company also declared a quarterly dividend of $0.525 per share, representing a 0.3% yield.
• Investor sentiment is mixed: Meta’s Muse AI agent and internally developed chips offer potential growth and cost savings, while heavy AI infrastructure spending, declining free cash flow, legal pressures and recent insider selling create risks. Analysts maintain a Moderate Buy consensus with an average price target of $788.88.

Whalen Wealth Management Inc. boosted its position in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 20.4% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 7,809 shares of the social networking company's stock after acquiring an additional 1,323 shares during the period. Meta Platforms accounts for about 2.0% of Whalen Wealth Management Inc.'s investment portfolio, making the stock its 8th largest position. Whalen Wealth Management Inc.'s holdings in Meta Platforms were worth $4,399,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Auto Owners Insurance Co raised its position in shares of Meta Platforms by 76,587.7% during the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company's stock valued at $69,502,379,000 after purchasing an additional 105,154,977 shares during the period. Geode Capital Management LLC increased its stake in Meta Platforms by 1.7% in the 4th quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company's stock worth $34,734,628,000 after buying an additional 878,396 shares in the last quarter. Norges Bank bought a new stake in Meta Platforms during the fourth quarter valued at about $22,152,075,000. Bank of America Corp DE lifted its position in shares of Meta Platforms by 14.6% in the first quarter. Bank of America Corp DE now owns 21,038,035 shares of the social networking company's stock valued at $12,036,491,000 after acquiring an additional 2,673,494 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Meta Platforms by 6.1% in the fourth quarter. Invesco Ltd. now owns 18,200,469 shares of the social networking company's stock worth $12,013,948,000 after acquiring an additional 1,046,715 shares during the period. Hedge funds and other institutional investors own 79.91% of the company's stock.

Meta Platforms Stock Down 2.4%

Shares of META opened at $665.75 on Friday. 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 business has a fifty day moving average of $606.33 and a 200 day moving average of $609.79. The company has a market cap of $1.70 trillion, a PE ratio of 25.08, a P/E/G ratio of 1.19 and a beta of 1.25. Meta Platforms, Inc. has a 52-week low of $520.26 and a 52-week high of $790.80.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The company's revenue was up 28.0% on a year-over-year basis. During the same quarter last year, the firm earned $7.14 EPS. On average, sell-side analysts expect that Meta Platforms, Inc. will post 27.93 EPS for the current year.

Meta Platforms Dividend Announcement

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

Meta Platforms News Roundup

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

Insider Buying and Selling

In other news, COO Javier Olivan sold 946 shares of the company's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $657.73, for a total transaction of $622,212.58. Following the transaction, the chief operating officer owned 10,716 shares of the company's stock, valued at approximately $7,048,234.68. This represents a 8.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan J. Li sold 9,196 shares of the stock in a transaction that occurred on 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 completion of the sale, the chief financial officer owned 13,186 shares in the company, valued at approximately $7,260,343.46. The trade was a 41.09% 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 sold a total of 81,758 shares of company stock worth $51,214,020 over the last three months. 13.53% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several analysts recently issued reports on META shares. DA Davidson decreased their target price on Meta Platforms from $850.00 to $700.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Cantor Fitzgerald restated a "neutral" rating on shares of Meta Platforms in a research note on Friday, September 11th. Erste Group Bank raised shares of Meta Platforms from a "hold" rating to a "buy" rating in a report on Tuesday, July 7th. Phillip Securities raised shares of Meta Platforms to a "strong-buy" rating in a report on Monday, August 3rd. Finally, Benchmark restated a "hold" rating on shares of Meta Platforms in a research report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price 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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