Waddell & Associates LLC Grows Stake in Meta Platforms, Inc. $META

Key Points

• Waddell & Associates increased its Meta stake by 37.7% in the second quarter, bringing its holdings to 5,969 shares valued at $3.36 million. Institutional investors collectively own about 79.9% of Meta’s stock.
• Meta’s AI infrastructure strategy could create new revenue through potential third-party data-center capacity sales, but heavy spending, financing obligations and intensifying AI competition remain concerns.
• Legal risks have intensified as 29 state attorneys general allege Meta’s platforms were designed to addict children, following a nearly $1 billion judgment in a similar New Mexico case. Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $785.32, despite recent target reductions.

Waddell & Associates LLC grew its stake in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 37.7% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 5,969 shares of the social networking company's stock after acquiring an additional 1,633 shares during the period. Waddell & Associates LLC's holdings in Meta Platforms were worth $3,362,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of the stock. RHL Group LLC bought a new stake in shares of Meta Platforms in the fourth quarter valued at $28,000. Strategic Wealth Advisors LLC bought a new position in shares of Meta Platforms during the 4th quarter worth $29,000. Niles Investment Management LLC purchased a new stake in Meta Platforms in the 4th quarter worth about $29,000. Axiom Investment Management LLC purchased a new stake in Meta Platforms in the 1st quarter worth about $36,000. Finally, Bayban raised its stake in Meta Platforms by 100.0% in the 1st quarter. Bayban now owns 70 shares of the social networking company's stock valued at $40,000 after acquiring an additional 35 shares during the period. Hedge funds and other institutional investors own 79.91% of the company's stock.

Meta Platforms News Summary

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

• Positive Sentiment: Meta is reportedly considering selling excess data-center capacity to third parties, which could help monetize its substantial AI infrastructure spending and create an additional revenue stream. The plan remains exploratory. Should You Buy Meta Platforms Stock Below $600 Before Mark Zuckerberg Unveils Its AI Cloud Business?
• Neutral Sentiment: Alibaba’s release of a laptop-ready Qwen model and open model weights underscores intensifying competition in AI, although the immediate financial impact on Meta is uncertain. Alibaba answers Meta's AI challenge with new laptop-ready model
• Negative Sentiment: Meta is facing a major federal trial brought by 29 state attorneys general, who allege Facebook and Instagram were deliberately designed to addict children and that the company misled the public about related risks. The states are seeking financial penalties—potentially as high as $1.4 trillion—and court-ordered product changes. Meta faces ‘astronomical' consequences as legal fight reaches critical moment in California
• Negative Sentiment: The legal overhang intensified after Meta recently lost a nearly $1 billion judgment in a similar New Mexico case. Investors are concerned that an adverse outcome could produce significant financial penalties, costly changes to platform design and broader regulatory restrictions, with thousands of related lawsuits potentially following. Meta Faces 29 States in Court Tuesday
• Negative Sentiment: Investors are also scrutinizing Meta’s AI spending. Data-center construction is consuming cash, while reported off-balance-sheet financing arrangements and residual-value guarantees could create future obligations if AI assets become unprofitable or underused. What Could Meta Platforms Off Balance Sheet AI Financing Mean For Investors?

Analysts Set New Price Targets

Several research firms have commented on META. The Goldman Sachs Group dropped their price objective on shares of Meta Platforms from $815.00 to $725.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Wall Street Zen lowered shares of Meta Platforms from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Phillip Securities upgraded shares of Meta Platforms to a "strong-buy" rating in a research note on Monday, August 3rd. Arete Research set a $735.00 price objective on shares of Meta Platforms and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Finally, Monness Crespi & Hardt reduced their price objective on shares of Meta Platforms from $890.00 to $730.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $785.32.

Meta Platforms Stock Performance

Meta Platforms stock opened at $568.97 on Tuesday. The firm's 50 day simple moving average is $595.62 and its 200 day simple moving average is $619.31. 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 has a market capitalization of $1.45 trillion, a PE ratio of 21.43, a price-to-earnings-growth ratio of 1.01 and a beta of 1.25. Meta Platforms, Inc. has a 1-year low of $520.26 and a 1-year high of $790.80.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.19 by ($1.01). Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The firm had revenue of $60.80 billion during the quarter, compared to analysts' expectations of $60.22 billion. During the same quarter in the prior year, the company earned $7.14 earnings per share. The business's revenue for the quarter was up 28.0% compared to the same quarter last year. As a group, analysts expect that Meta Platforms, Inc. will post 28.5 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were given a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Monday, June 15th. Meta Platforms's dividend payout ratio (DPR) is 7.91%.

Insider Buying and Selling at Meta Platforms

In related news, COO Javier Olivan sold 1,258 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $600.00, for a total transaction of $754,800.00. Following the completion of the transaction, the chief operating officer directly owned 1,517 shares in the company, valued at $910,200. The trade was a 45.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 500 shares of the company's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $561.56, for a total value of $280,780.00. Following the completion of the transaction, the director owned 2,943 shares in the company, valued at $1,652,671.08. This represents a 14.52% 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 17,772 shares of company stock valued at $10,823,658 in the last three months. 13.53% of the stock is owned by corporate insiders.

Meta Platforms Company Profile

Meta Platforms, Inc NASDAQ: META, formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta's core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

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