Meta Platforms, Inc. (NASDAQ:META) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment remains positive: Forty-seven brokerages give Meta a consensus “Moderate Buy” rating, including 35 buys and four strong buys, with an average 12-month price target of approximately $785.
• Recent performance was mixed: Meta reported quarterly revenue of $60.8 billion, up 28% year over year and above estimates, but earnings per share of $6.18 missed the $7.19 consensus forecast.
• Risks are mounting around regulation and AI spending: Meta faces a major trial brought by 29 states over alleged harm to children, while investors are also assessing the costs and potential future obligations associated with its heavy data-center and AI investments.

Meta Platforms, Inc. (NASDAQ:META - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the forty-seven research firms that are covering the firm, MarketBeat Ratings reports. Eight investment analysts have rated the stock with a hold rating, thirty-five have issued a buy rating and four have assigned a strong buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $785.3171.

Several equities research analysts recently weighed in on META shares. BNP Paribas Exane started coverage on shares of Meta Platforms in a research note on Tuesday, June 2nd. They set an "outperform" rating on the stock. Monness Crespi & Hardt decreased their target price on Meta Platforms from $890.00 to $730.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Citigroup lowered their target price on Meta Platforms from $850.00 to $800.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Bank of America dropped their price target on Meta Platforms from $835.00 to $810.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Finally, Weiss Ratings downgraded Meta Platforms from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, June 26th.

Meta Platforms Price Performance

Shares of NASDAQ META opened at $568.97 on Tuesday. Meta Platforms has a twelve month low of $520.26 and a twelve month high of $790.80. 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 company has a market capitalization of $1.45 trillion, a price-to-earnings ratio of 21.43, a price-to-earnings-growth ratio of 1.01 and a beta of 1.25. The business has a 50 day simple moving average of $595.62 and a 200-day simple moving average of $619.31.

Meta Platforms (NASDAQ:META - Get Free Report) last announced its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $60.22 billion. During the same quarter last year, the business 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, equities research analysts expect that Meta Platforms will post 28.5 earnings per share for the current year.

Meta Platforms Announces Dividend

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

More Meta Platforms News

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?

Insiders Place Their Bets

In other news, Director Robert M. Kimmitt sold 500 shares of the business's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $561.56, for a total transaction of $280,780.00. Following the completion of the transaction, the director owned 2,943 shares of the company's stock, valued at approximately $1,652,671.08. The trade was a 14.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 1,258 shares of the company'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 transaction, the chief operating officer owned 1,517 shares of the company's stock, valued at $910,200. This represents a 45.33% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 17,772 shares of company stock worth $10,823,658 over the last quarter. 13.53% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Meta Platforms

Several large investors have recently made changes to their positions in META. RHL Group LLC acquired a new position in Meta Platforms during the 4th quarter worth $28,000. Strategic Wealth Advisors LLC acquired a new position in shares of Meta Platforms during the fourth quarter valued at $29,000. Advantage Trust Co acquired a new position in shares of Meta Platforms during the second quarter valued at $28,000. Philadelphia Investment Partners LLC bought a new stake in shares of Meta Platforms during the second quarter valued at about $32,000. Finally, Axiom Investment Management LLC bought a new stake in shares of Meta Platforms during the first quarter valued at about $36,000. Institutional investors and hedge funds own 79.91% of the company's stock.

About Meta Platforms

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source