Meta Platforms (NASDAQ:META) Trading Up 1.3% - Still a Buy?

Key Points

• Meta shares rose 1.3% to about $682, while trading volume was slightly below its daily average. Analysts remain broadly bullish, with a “Moderate Buy” consensus rating and an average price target of $788.88.
• AI is a major growth catalyst: Meta’s Muse AI agent, subscription offerings and business-focused AI tools could create new revenue streams, while internally developed MTIA chips may reduce infrastructure costs by an estimated $8.5 billion in 2027.
• Risks remain, including a German ruling over fraudulent third-party advertisements, expanding age-verification requirements, hardware execution challenges and recent insider share sales. Meta’s latest quarter also missed EPS expectations despite 28% year-over-year revenue growth.

Shares of Meta Platforms, Inc. (NASDAQ:META - Get Free Report) rose 1.3% during mid-day trading on Thursday . The company traded as high as $683.20 and last traded at $682.31. 15,620,475 shares were traded during mid-day trading, a decline of 8% from the average daily volume of 16,963,623 shares. The stock had previously closed at $673.31.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: AI agent momentum: Meta’s Muse AI agent is attracting significant attention following its launch, with reports highlighting strong download activity and the potential to create recurring revenue through paid AI features. Muse is also adding voice-call capabilities and could expand into AI-powered shopping. Meta Muse May Be Biggest AI Launch Since ChatGPT
• Positive Sentiment: New monetization opportunities: Meta One subscription plans bundle enhanced features across Facebook, Instagram and WhatsApp, while AI agents for WhatsApp Business could support commercial revenue growth. Analysts see AI agents, cloud computing and business AI as potential growth engines beyond advertising. Meta Tests AI as the Upsell for Free Social Media
• Positive Sentiment: Lower AI infrastructure costs: Bank of America estimates Meta could save approximately $8.5 billion in 2027 by using its own MTIA chips for AI workloads, reducing reliance on third-party suppliers such as Nvidia. Meta Can Save $8.5 Billion in 2027 by Using Its Own MTIA Chips
• Positive Sentiment: Analyst and technical support: Citi and Rosenblatt reiterated bullish views, with Rosenblatt assigning an $886 price target. Meta Connect on September 23 is viewed as a near-term catalyst for additional AI and hardware announcements. Meta Event Next Week Could Spark Stock Gains
• Neutral Sentiment: Meta reportedly plans camera-free smart glasses, potentially addressing privacy concerns but adding execution risk to its hardware strategy. Meta Plans Camera-Free Smart Glasses
• Negative Sentiment: A German court ruled Meta liable for fraudulent third-party advertisements on Facebook and Instagram, ordering damages and content removal. The decision could increase legal costs and platform-moderation obligations. German Court Rules Meta Liable for Fake Ads
• Negative Sentiment: COO Javier Olivan disclosed sales of Meta shares under a pre-arranged Rule 10b5-1 plan, a modest negative sentiment signal but not necessarily an indication of a change in business outlook.
• Negative Sentiment: BMO identified expanding global age-verification requirements as an emerging regulatory risk for Meta’s social-media platforms.

Wall Street Analysts Forecast Growth

META has been the topic of a number of recent analyst reports. Rothschild & Co Redburn raised their target price on Meta Platforms from $900.00 to $1,000.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Scotiabank reaffirmed a "sector perform" rating and issued a $600.00 target price on shares of Meta Platforms in a research note on Thursday, July 30th. Guggenheim reiterated a "buy" rating and set a $800.00 price objective on shares of Meta Platforms in a report on Tuesday, July 28th. BNP Paribas Exane initiated coverage on shares of Meta Platforms in a report on Tuesday, June 2nd. They set an "outperform" rating on the stock. Finally, Sanford C. Bernstein reiterated an "outperform" rating and issued a $800.00 price target on shares of Meta Platforms in a report on Thursday, July 30th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $788.88.

Meta Platforms Stock Performance

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 stock's fifty day moving average is $605.39 and its two-hundred day moving average is $609.16. The firm has a market capitalization of $1.74 trillion, a price-to-earnings ratio of 25.71, a P/E/G ratio of 1.16 and a beta of 1.25.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share 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 during the quarter, compared to the consensus estimate of $60.22 billion. During the same quarter last year, the company posted $7.14 EPS. The firm's revenue was up 28.0% on a year-over-year basis. On average, analysts predict that Meta Platforms, Inc. will post 28.17 earnings per share for the current year.

Meta Platforms Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Monday, September 21st will be issued a dividend of $0.525 per share. This represents a $2.10 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Monday, September 21st. Meta Platforms's dividend payout ratio (DPR) is presently 7.91%.

Insider Activity

In other news, CFO Susan Li sold 9,196 shares of Meta Platforms stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $550.61, for a total transaction of $5,063,409.56. Following the completion of the sale, the chief financial officer owned 13,186 shares of the company's stock, valued at approximately $7,260,343.46. This trade represents a 41.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Aaron Anderson sold 3,240 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $618.06, for a total transaction of $2,002,514.40. Following the completion of the sale, the chief accounting officer directly owned 6,271 shares of the company's stock, valued at approximately $3,875,854.26. The trade was a 34.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 61,758 shares of company stock worth $37,709,420. Corporate insiders own 13.53% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in META. RHL Group LLC bought a new stake in Meta Platforms during the fourth quarter worth about $28,000. Advantage Trust Co bought a new stake in Meta Platforms during the second quarter worth $28,000. Niles Investment Management LLC bought a new stake in Meta Platforms during the fourth quarter worth $29,000. Philadelphia Investment Partners LLC acquired a new stake in shares of Meta Platforms in the 2nd quarter valued at $32,000. Finally, Axiom Investment Management LLC acquired a new stake in shares of Meta Platforms in the 1st quarter valued at $36,000. 79.91% of the stock is owned by institutional investors.

Meta Platforms Company Profile

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company's principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.

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