Meta Platforms, Inc. $META Position Lessened by BDF Gestion

Key Points

• BDF Gestion reduced its Meta position by 22.6% in the third quarter, selling 9,569 shares and retaining 32,778 shares valued at approximately $23.8 million. Institutional investors and hedge funds collectively own 79.91% of Meta’s stock.
• Meta reported stronger-than-expected quarterly results, with revenue rising 26.1% year over year to $64.6 billion and EPS of $7.40 versus the $6.54 analyst consensus. Analysts remain broadly bullish, with 47 Buy ratings and a consensus price target of $811.24.
• Heavy AI spending and legal risks remain key concerns. Capital expenditures are rising, Reality Labs is expected to incur substantial losses, and Meta faces major legal liabilities, including a $25 billion New Mexico judgment and a $9.9 billion teen social-media lawsuit charge.

BDF Gestion trimmed its position in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 22.6% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 32,778 shares of the social networking company's stock after selling 9,569 shares during the quarter. Meta Platforms accounts for 3.3% of BDF Gestion's portfolio, making the stock its 6th largest position. BDF Gestion's holdings in Meta Platforms were worth $23,770,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the company. Horizons Wealth Management bought a new stake in Meta Platforms in the 3rd quarter valued at $33,000. Advantage Trust Co acquired a new position in shares of Meta Platforms in the 2nd quarter valued at $28,000. Philadelphia Investment Partners LLC acquired a new position in shares of Meta Platforms in the 2nd quarter valued at $32,000. Axiom Investment Management LLC bought a new position in shares of Meta Platforms during the 1st quarter worth about $36,000. Finally, Schuylkill Financial LLC bought a new position in shares of Meta Platforms during the 2nd quarter worth about $36,000. 79.91% of the stock is currently owned by institutional investors and hedge funds.

Meta Platforms News Roundup

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

• Positive Sentiment: Revenue and earnings exceeded expectations. Meta reported record quarterly revenue of approximately $64.6 billion, up 26% year over year and above the roughly $63.3 billion consensus estimate. Earnings of $7.40 per share also surpassed analyst expectations near $6.54. The results highlighted continued strength in advertising volume, pricing and monetization. Meta Platforms Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Muse is gaining meaningful traction. Meta said its AI assistant Muse has more than 10 million users, with shopping among the leading activities. Investors see the product as a potential way to increase engagement, improve recommendations and generate additional advertising and commerce revenue across Meta’s roughly 3.5 billion-user ecosystem. Meta Says Muse Has Over 10M Users
• Positive Sentiment: Analysts view the core business and AI returns favorably. Commentary following the report cited strong ad efficiency, higher engagement and healthy adjusted operating margins, supporting bullish views that Meta’s AI investments are beginning to contribute to the advertising business. Meta Q3 Strong Growth Makes This a Strong Buy
• Neutral Sentiment: Meta is expanding AI funding while trying to manage cash pressure. Third-quarter capital expenditures reached about $34.9 billion, and the company raised the low end of its annual spending outlook. A new nonvoting Class C share is intended to help fund the AI buildout without reducing Mark Zuckerberg’s voting control, but it introduces potential dilution and reinforces concerns about heavy future investment. Meta to Issue New Class of Shares
• Negative Sentiment: Legal liabilities remain a major overhang. A $9.9 billion charge tied to a teen social-media lawsuit weighed on reported profit, while a New Mexico court ordered Meta to pay $25 billion in a separate privacy case. Meta plans to appeal, but the judgment increases regulatory, financial and reputational risks. Meta Ordered to Pay $25 Billion to New Mexico
• Negative Sentiment: AI profitability is not yet established. Zuckerberg said Muse carries very high computing costs, and Reality Labs could lose approximately $15 billion next year. These losses may limit free cash flow and keep investors sensitive to whether AI growth ultimately produces returns exceeding the cost of the buildout. Meta CEO Says Muse and Reality Labs Are Unprofitable
• Negative Sentiment: Insider selling added a modest cautionary signal. COO Javier Olivan sold shares under a pre-arranged Rule 10b5-1 plan. Because the transactions were scheduled in advance, they are not necessarily a judgment on Meta’s outlook, but they reduce his direct ownership. SEC Insider Ownership Filing

Insiders Place Their Bets

In other news, COO Javier Olivan sold 946 shares of Meta Platforms stock in a transaction that occurred on Monday, October 19th. The shares were sold at an average price of $707.20, for a total value of $669,011.20. Following the completion of the transaction, the chief operating officer owned 5,986 shares in the company, valued at approximately $4,233,299.20. The trade was a 13.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Zuckerberg sold 27,474 shares of the business's stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $777.44, for a total value of $21,359,386.56. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 149,906 shares of company stock valued at $102,347,409. 13.53% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several brokerages have recently weighed in on META. Weiss Ratings upgraded shares of Meta Platforms from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Citic Securities lowered their target price on shares of Meta Platforms from $770.00 to $718.00 and set a "buy" rating on the stock in a research note on Monday, August 3rd. DZ Bank reissued a "buy" rating on shares of Meta Platforms in a research report on Thursday, July 30th. Monness Crespi & Hardt increased their price target on shares of Meta Platforms from $730.00 to $830.00 and gave the stock a "buy" rating in a research report on Monday, September 28th. Finally, Pivotal Research lifted their price objective on Meta Platforms from $790.00 to $930.00 and gave the company a "buy" rating in a report on Tuesday, October 13th. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, Meta Platforms currently has an average rating of "Moderate Buy" and a consensus target price of $811.24.

Meta Platforms Stock Up 0.5%

META opened at $697.52 on Thursday. The firm's 50-day simple moving average is $662.27 and its 200-day simple moving average is $629.10. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.23 and a current ratio of 2.23. Meta Platforms, Inc. has a twelve month low of $520.26 and a twelve month high of $779.82. The firm has a market cap of $1.78 trillion, a price-to-earnings ratio of 26.27, a PEG ratio of 1.28 and a beta of 1.19.

Meta Platforms (NASDAQ:META - Get Free Report) last announced its earnings results on Wednesday, October 21st. The social networking company reported $7.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.54 by $0.86. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business had revenue of $64.60 billion during the quarter, compared to analysts' expectations of $63.34 billion. During the same quarter last year, the company posted $7.25 EPS. The firm's revenue for the quarter was up 26.1% on a year-over-year basis. Equities research analysts anticipate that Meta Platforms, Inc. will post 27.32 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Shareholders of record on Monday, September 21st were paid a dividend of $0.5250 per share. This represents a $2.10 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Monday, September 21st. Meta Platforms's dividend payout ratio is currently 7.91%.

About Meta Platforms

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company's principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.

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