Meta Platforms (NASDAQ:META) Shares Up 6.7% - Still a Buy?

Key Points

• Meta shares jumped 6.7% on Tuesday to about $572 with trading volume roughly double the average, catalyzed by positive developments like a Corning-backed optical‑cable expansion for AI data centers, new Ray‑Ban prescription smart glasses, and new AI features aimed at boosting engagement.
• Analysts remain broadly bullish — MarketBeat shows a "Moderate Buy" consensus with a collective price target near $845, underpinned by a recent earnings beat, strong margins, and continued buy/strong‑buy ratings from major brokers.
• Significant risks persist: additional Reality Labs layoffs, international regulatory and legal pressure, and heavy AI/Reality Labs capex could weigh on near‑term execution, free cash flow, and investor sentiment.

Meta Platforms, Inc. (NASDAQ:META - Get Free Report) shot up 6.7% during trading on Tuesday . The company traded as high as $573.69 and last traded at $572.13. 32,214,733 shares traded hands during mid-day trading, an increase of 102% from the average session volume of 15,909,404 shares. The stock had previously closed at $536.38.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Corning expansion — Meta and Corning celebrated the start of construction on an expanded U.S. optical‑cable plant tied to their multiyear (up to $6B) agreement to support AI data‑center buildout, strengthening Meta’s supply chain for large AI deployments. Read More.
• Positive Sentiment: Product momentum — Meta unveiled two new Ray‑Ban prescription smart glasses, reinforcing progress in Reality Labs’ consumer hardware and giving investors a tangible growth story beyond ads. Read More.
• Positive Sentiment: AI features & engagement — Meta is rolling out new AI and engagement features across its apps aimed at lifting user engagement and ad revenue as competition intensifies, a narrative that supports ad‑recovery expectations. Read More.
• Positive Sentiment: Monetization tests — Meta is trialing a paid Instagram tier (Instagram Plus) in select markets, which could diversify revenue beyond ads if rolled out broadly. Read More.
• Positive Sentiment: Analyst support — Major analysts (Morgan Stanley, Jefferies and others) continue to call Meta a long‑term buy despite the pullback, framing current weakness as a tactical entry tied to AI upside. Read More.
• Neutral Sentiment: Retail strategy — Meta is sharing learnings from its Meta Lab stores with wearable retailers and testing in‑store approaches for AI/VR products; useful for distribution but longer‑term in impact. Read More.
• Negative Sentiment: Layoffs — Another round of cuts will affect ~168 employees in Washington state, with VR teams hit hard; signals Reality Labs challenges and near‑term execution risk. Read More.
• Negative Sentiment: Regulatory pressure — Indonesia summoned Meta over non‑compliance with child social media rules; combined with other international scrutiny, this increases legal/compliance uncertainty and potential fines or restrictions. Read More.
• Negative Sentiment: Legal & valuation headwinds — Recent court rulings and ongoing litigation have hit investor sentiment (and founder net worth headlines), contributing to the year‑to‑date decline and reinforcing downside risk. Read More.
• Negative Sentiment: Capex burden — Analysts continue to flag Meta’s massive AI/Reality Labs capex plans (and related nuclear/energy investments) as a near‑term drag on free cash flow and profitability, a key reason some investors remain cautious. Read More.

Analyst Ratings Changes

A number of brokerages have recently issued reports on META. Rothschild & Co Redburn set a $900.00 target price on shares of Meta Platforms in a research report on Monday, January 26th. Citigroup reaffirmed an "outperform" rating on shares of Meta Platforms in a research report on Thursday, January 29th. Stifel Nicolaus boosted their price objective on shares of Meta Platforms from $785.00 to $820.00 and gave the company a "buy" rating in a report on Thursday, January 29th. Mizuho increased their target price on shares of Meta Platforms from $815.00 to $850.00 and gave the stock an "outperform" rating in a research report on Thursday, January 29th. Finally, Argus reaffirmed a "buy" rating and set a $800.00 target price on shares of Meta Platforms in a report on Monday, February 2nd. Four research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Meta Platforms presently has an average rating of "Moderate Buy" and a consensus price target of $845.54.

Meta Platforms Stock Up 6.7%

The firm's fifty day moving average is $642.25 and its 200-day moving average is $664.52. The company has a market capitalization of $1.45 trillion, a P/E ratio of 24.35, a price-to-earnings-growth ratio of 0.81 and a beta of 1.30. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.60 and a current ratio of 2.60.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its earnings results on Wednesday, January 28th. The social networking company reported $8.88 EPS for the quarter, beating the consensus estimate of $8.16 by $0.72. The firm had revenue of $59.89 billion during the quarter, compared to the consensus estimate of $58.33 billion. Meta Platforms had a return on equity of 38.61% and a net margin of 30.08%.The business's quarterly revenue was up 23.8% on a year-over-year basis. During the same period last year, the company earned $8.02 earnings per share. As a group, equities research analysts predict that Meta Platforms, Inc. will post 26.7 EPS for the current year.

Meta Platforms Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Monday, March 16th were issued a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Monday, March 16th. Meta Platforms's payout ratio is currently 8.94%.

Insider Transactions at Meta Platforms

In other Meta Platforms news, Director Robert M. Kimmitt sold 580 shares of the company's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $632.02, for a total value of $366,571.60. Following the completion of the sale, the director directly owned 4,427 shares of the company's stock, valued at approximately $2,797,952.54. This represents a 11.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Javier Olivan sold 926 shares of the stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $605.38, for a total transaction of $560,581.88. Following the completion of the sale, the chief operating officer owned 13,335 shares of the company's stock, valued at approximately $8,072,742.30. This trade represents a 6.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 161,448 shares of company stock worth $103,333,788 in the last quarter. 13.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Meta Platforms

Several institutional investors have recently modified their holdings of the business. Westchester Capital Management Inc. purchased a new position in shares of Meta Platforms in the 3rd quarter worth about $26,000. Bare Financial Services Inc purchased a new stake in Meta Platforms during the second quarter worth about $30,000. RHL Group LLC purchased a new stake in Meta Platforms during the fourth quarter worth about $28,000. Strategic Wealth Advisors LLC bought a new stake in Meta Platforms in the fourth quarter worth about $29,000. Finally, Knuff & Co LLC purchased a new position in Meta Platforms in the second quarter valued at about $44,000. 79.91% of the stock is owned by institutional investors.

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.

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