Meta Platforms (NASDAQ:META) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Meta Platforms from Buy to Hold, adding to a mixed analyst picture even though the consensus rating remains Moderate Buy with an average target price of about $840.31.
• Meta shares were recently down 0.7% and opened at $614.23, leaving the stock below both its 50-day and 200-day moving averages.
• The company’s latest earnings were strong, with EPS of $10.44 beating estimates and revenue of $56.31 billion topping expectations, but investors are also watching rising AI-related spending and ongoing regulatory pressure.

Meta Platforms (NASDAQ:META - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

Other equities research analysts have also recently issued research reports about the stock. Monness Crespi & Hardt increased their price target on shares of Meta Platforms from $808.00 to $890.00 and gave the company a "buy" rating in a research report on Thursday, January 29th. Mizuho decreased their price objective on shares of Meta Platforms from $850.00 to $835.00 and set an "outperform" rating for the company in a report on Tuesday, May 5th. Erste Group Bank lowered shares of Meta Platforms from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. JPMorgan Chase & Co. restated a "neutral" rating and issued a $725.00 price objective (down from $825.00) on shares of Meta Platforms in a report on Thursday, April 30th. Finally, Cantor Fitzgerald decreased their price objective on shares of Meta Platforms from $850.00 to $750.00 and set an "overweight" rating for the company in a report on Thursday, April 30th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $840.31.

Meta Platforms Trading Down 0.7%

Shares of META opened at $614.23 on Friday. The stock has a market capitalization of $1.55 trillion, a P/E ratio of 22.33, a PEG ratio of 1.08 and a beta of 1.25. The company has a quick ratio of 2.35, a current ratio of 2.35 and a debt-to-equity ratio of 0.24. The firm has a fifty day simple moving average of $622.18 and a two-hundred day simple moving average of $640.72. Meta Platforms has a twelve month low of $520.26 and a twelve month high of $796.25.

Meta Platforms (NASDAQ:META - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The social networking company reported $10.44 earnings per share for the quarter, beating the consensus estimate of $6.67 by $3.77. The business had revenue of $56.31 billion during the quarter, compared to analysts' expectations of $55.56 billion. Meta Platforms had a net margin of 32.84% and a return on equity of 36.93%. The firm's revenue for the quarter was up 33.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $6.43 EPS. On average, research analysts anticipate that Meta Platforms will post 29.65 EPS for the current year.

Insider Buying and Selling

In related news, COO Javier Olivan sold 2,778 shares of the stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $629.45, for a total value of $1,748,612.10. Following the completion of the transaction, the chief operating officer directly owned 10,557 shares in the company, valued at $6,645,103.65. This trade represents a 20.83% decrease in their position. The sale was disclosed in a legal 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, CTO Andrew Bosworth sold 8,089 shares of the stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $631.24, for a total transaction of $5,106,100.36. Following the completion of the transaction, the chief technology officer owned 2,841 shares of the company's stock, valued at approximately $1,793,352.84. The trade was a 74.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 169,231 shares of company stock worth $108,239,954 in the last three months. 13.61% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Cardiff Park Advisors LLC increased its stake in shares of Meta Platforms by 1.4% in the 1st quarter. Cardiff Park Advisors LLC now owns 182,387 shares of the social networking company's stock worth $104,349,000 after acquiring an additional 2,433 shares in the last quarter. Gateway Wealth Partners LLC increased its stake in Meta Platforms by 240.7% during the 1st quarter. Gateway Wealth Partners LLC now owns 20,362 shares of the social networking company's stock valued at $11,650,000 after purchasing an additional 14,385 shares in the last quarter. Ardmore Road Asset Management LP bought a new stake in Meta Platforms during the 1st quarter valued at about $57,785,000. Styrax Capital LP increased its stake in Meta Platforms by 5.7% during the 1st quarter. Styrax Capital LP now owns 307,981 shares of the social networking company's stock valued at $176,205,000 after purchasing an additional 16,512 shares in the last quarter. Finally, Delta Global Management LP increased its stake in Meta Platforms by 27.7% during the 1st quarter. Delta Global Management LP now owns 25,733 shares of the social networking company's stock valued at $14,723,000 after purchasing an additional 5,589 shares in the last quarter. 79.91% of the stock is currently owned by institutional investors.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Bill Ackman’s Pershing Square continues to hold Meta alongside other megacap AI leaders, reinforcing the view that META remains a core long-term AI and digital ads name. Microsoft, Meta, Amazon and Google. Is Ackman's Hedge Fund Just a Mag 7 Play?
• Positive Sentiment: Analysts and market commentary continue to point out that Meta’s latest earnings beat was strong, with faster revenue growth and better-than-expected EPS, which supports the bull case despite recent volatility. Meta Platforms Stock Performance
• Neutral Sentiment: Meta is getting attention as one of the most-watched stocks on Zacks, suggesting investors are closely focused on what comes next for AI spending, ad growth, and margins. Meta Platforms, Inc. (META) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Meta is still a key part of the AI trade, but commentary about an AI bubble and crowded megacap positioning is keeping sentiment cautious around the stock. UBS warns AI stocks are overheating as growth expectations collide with history
• Negative Sentiment: Meta’s CFO said 2026 capital expenditures are expected to keep rising, intensifying concerns that heavy AI infrastructure spending could weigh on free cash flow and near-term profitability. Money Pit? Zuckerberg Just Exposed Why Hyperscaler AI Spending Keeps Going Up
• Negative Sentiment: Meta is facing fresh legal and regulatory pressure, including a New Mexico youth-safety trial, an Italian lawsuit over minors’ social media use, and a California suit tied to AI scam ads and advertising practices. Meta and Google fund US kids' groups, as critics warn of social media risk
• Negative Sentiment: Some fund managers trimmed META holdings, which may add to near-term caution even though other investors increased exposure. ARK Investment’s Cathie Wood Cuts Meta Platforms Stake Sharply

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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