Meta Platforms (NASDAQ:META) Shares Up 2.6% - Should You Buy?

Key Points

• Meta shares rose 2.6% to $762.50 amid enthusiasm over its new Muse Wonder AI models, which Meta says can compete with offerings from OpenAI and Anthropic. Early user-retention data and subscription plans have strengthened hopes for a standalone AI revenue stream.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $796.51; Truist set a Street-high target of $1,000. Investors will watch Meta’s October 21 earnings report for advertising growth, revenue guidance, and evidence of Muse monetization.
• Key risks include elevated valuation and rising AI infrastructure spending, which could pressure margins if adoption or quarterly results disappoint. The stock is near its 52-week high, while recent insider sales may add to profit-taking concerns.

Meta Platforms, Inc. (NASDAQ:META - Get Free Report) was up 2.6% during mid-day trading on Tuesday. The stock traded as high as $771.27 and last traded at $762.50. Approximately 22,600,215 shares were traded during mid-day trading, an increase of 29% from the average session volume of 17,516,102 shares. The stock had previously closed at $742.96.

Key Meta Platforms News

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

• Positive Sentiment: Meta introduced Muse Wonder and Muse Wonder Full, its first frontier AI models, designed for personal assistants and professional agents that can maintain long-term memory and complete complex, multi-step tasks. Meta says the models are competitive with offerings from OpenAI and Anthropic, strengthening its position in the AI race. Meta releases its first frontier model, Muse Wonder
• Positive Sentiment: Third-party app data reportedly showed early Muse user-retention rates comparable with ChatGPT, helping reinforce the possibility that Meta can build a meaningful standalone AI product and eventually generate subscription revenue. Muse access is being offered through monthly plans priced at $20 and $100. Why Meta Stock Is Up Today
• Positive Sentiment: Wall Street support has strengthened. Truist issued a Street-high $1,000 price target tied to AI adoption and advertising improvements, while KeyCorp and Rosenblatt reaffirmed bullish ratings with targets of $900 and $886, respectively. Analysts also cite AI-driven ad growth and improved ad conversions as additional support. Social Media Stocks Rally as Truist Sets $1,000 Meta Target
• Positive Sentiment: Meta’s Quest ecosystem received a commercial boost as Virtuix became an official Meta reseller and launched Omni One bundles with Quest headsets. Virtuix said orders increased approximately threefold following its Quest launch, potentially supporting demand for Meta’s virtual-reality hardware ecosystem. Virtuix Deepens Meta Partnership
• Neutral Sentiment: Meta will report third-quarter results after the market closes on October 21. Investors will focus on revenue guidance of $61 billion to $64 billion, AI-related spending of approximately $130 billion to $145 billion, advertising growth, and evidence that Muse adoption is translating into revenue. Meta to Announce Third Quarter 2026 Results
• Negative Sentiment: Despite the enthusiasm, Meta’s valuation is elevated after its recent rally, and analysts warn that heavy AI infrastructure costs could pressure margins. The stock is also near its 52-week high, increasing the risk of profit-taking if Muse growth or quarterly results disappoint. Meta Platforms Rises 12% in 3 Months

Analyst Ratings Changes

A number of analysts recently commented on the stock. Rosenblatt Securities restated a "buy" rating and set a $886.00 price target on shares of Meta Platforms in a research note on Tuesday. Scotiabank reiterated a "sector perform" rating and issued a $600.00 price objective (down from $700.00) on shares of Meta Platforms in a research note on Thursday, July 30th. Susquehanna lowered their target price on shares of Meta Platforms from $900.00 to $650.00 and set a "positive" rating on the stock in a report on Thursday, July 30th. Weiss Ratings raised shares of Meta Platforms from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday. Finally, DA Davidson dropped their target price on Meta Platforms from $850.00 to $700.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $796.51.

Meta Platforms Stock Performance

The company has a 50-day moving average of $644.04 and a 200 day moving average of $621.26. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $1.94 trillion, a PE ratio of 28.72, a PEG ratio of 1.25 and a beta of 1.19.

Meta Platforms (NASDAQ:META - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business 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 posted $7.14 EPS. The business's revenue was up 28.0% compared to the same quarter last year. Equities research analysts predict that Meta Platforms, Inc. will post 27.94 EPS for the current year.

Meta Platforms Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were issued a $0.5250 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. Meta Platforms's dividend payout ratio is presently 7.91%.

Insider Activity

In other news, insider Christopher Cox sold 40,000 shares of Meta Platforms stock in a transaction on Monday, September 21st. The shares were sold at an average price of $712.76, for a total transaction of $28,510,400.00. Following the completion of the sale, the insider directly owned 184,516 shares of the company's stock, valued at approximately $131,515,624.16. The trade was a 17.82% decrease in their position. 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 transaction of $21,359,386.56. 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. In the last quarter, insiders have sold 148,222 shares of company stock worth $101,033,627. 13.53% of the stock is currently owned by corporate insiders.

Institutional Trading of Meta Platforms

Several institutional investors have recently added to or reduced their stakes in META. Horizons Wealth Management acquired a new position in Meta Platforms during the 3rd quarter worth approximately $33,000. Advantage Trust Co acquired a new stake in Meta Platforms in the second quarter valued at approximately $28,000. Philadelphia Investment Partners LLC acquired a new stake in Meta Platforms in the second quarter valued at approximately $32,000. Axiom Investment Management LLC purchased a new stake in shares of Meta Platforms during the first quarter valued at approximately $36,000. Finally, Schuylkill Financial LLC purchased a new stake in shares of Meta Platforms during the second quarter valued at approximately $36,000. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

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 operates a global family of apps that includes Facebook, Instagram, Messenger, WhatsApp and Threads, enabling users to connect, communicate, share content and discover communities.

Meta generates most of its business through digital advertising displayed across its platforms. Its products serve individuals, creators, businesses and organizations in markets around the world, while its advertising tools help businesses reach audiences based on factors such as interests, activity and demographics.

Through its Reality Labs division, Meta develops virtual and augmented reality hardware, software and services, including the Meta Quest line of headsets and related experiences.

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