Meta Platforms (NASDAQ:META) Releases Quarterly Earnings Results, Misses Expectations By $0.95 EPS

Meta Platforms (NASDAQ:META) announced its quarterly earnings results on Wednesday. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.13 by ($0.95), FiscalAI reports. The company had revenue of $60.80 billion for the quarter, compared to analysts’ expectations of $60.22 billion. Meta Platforms had a net margin of 32.84% and a return on equity of 36.93%.

Meta Platforms Price Performance

META stock traded down $7.80 during trading on Wednesday, hitting $585.61. 18,271,104 shares of the company’s stock traded hands, compared to its average volume of 16,635,607. Meta Platforms has a 52 week low of $520.26 and a 52 week high of $796.25. The stock has a market capitalization of $1.48 trillion, a price-to-earnings ratio of 21.29, a P/E/G ratio of 1.00 and a beta of 1.25. The business has a fifty day simple moving average of $603.98 and a 200 day simple moving average of $624.67. The company has a debt-to-equity ratio of 0.24, a quick ratio of 2.35 and a current ratio of 2.35.

Meta Platforms Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were paid a dividend of $0.525 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. Meta Platforms’s dividend payout ratio is presently 7.63%.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on META. Wells Fargo & Company lifted their price target on Meta Platforms from $767.00 to $835.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 21st. Rothschild & Co Redburn upped their price objective on Meta Platforms from $900.00 to $1,000.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Wolfe Research decreased their price target on Meta Platforms from $850.00 to $800.00 and set an “outperform” rating for the company in a research note on Friday, April 10th. The Goldman Sachs Group cut shares of Meta Platforms from a “buy” rating to a “sell” rating in a research note on Tuesday, June 2nd. Finally, 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. Five investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Meta Platforms has an average rating of “Moderate Buy” and a consensus target price of $835.64.

Insider Buying and Selling

In related news, Director Robert M. Kimmitt sold 500 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $607.75, for a total value of $303,875.00. Following the transaction, the director owned 3,443 shares of the company’s stock, valued at $2,092,483.25. This trade represents a 12.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 837 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $645.85, for a total value of $540,576.45. Following the completion of the sale, the chief operating officer owned 7,127 shares of the company’s stock, valued at $4,602,972.95. The trade was a 10.51% 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. Over the last 90 days, insiders have sold 37,859 shares of company stock worth $23,087,979. Company insiders own 13.53% of the company’s stock.

Hedge Funds Weigh In On Meta Platforms

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Brighton Jones LLC increased its position in Meta Platforms by 1.7% during the 4th quarter. Brighton Jones LLC now owns 34,551 shares of the social networking company’s stock valued at $20,230,000 after buying an additional 570 shares in the last quarter. Revolve Wealth Partners LLC raised its position in Meta Platforms by 10.2% during the fourth quarter. Revolve Wealth Partners LLC now owns 9,456 shares of the social networking company’s stock valued at $5,537,000 after acquiring an additional 875 shares in the last quarter. Headwater Capital Co Ltd boosted its position in Meta Platforms by 294.7% in the 1st quarter. Headwater Capital Co Ltd now owns 150,000 shares of the social networking company’s stock worth $86,454,000 after purchasing an additional 112,000 shares in the last quarter. Dymon Asia Capital Singapore PTE. LTD. purchased a new position in shares of Meta Platforms during the 2nd quarter valued at approximately $213,000. Finally, Capital & Planning LLC purchased a new stake in Meta Platforms during the second quarter worth $322,000. 79.91% of the stock is currently owned by institutional investors.

Meta Platforms News Roundup

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

• Positive Sentiment: Analysts expect Meta to exceed consensus estimates, citing healthy advertising demand, rising impressions, user engagement and improving AI-powered ad targeting. Bank of America forecasts $60.6 billion in revenue and $7.50 in earnings per share, above consensus estimates of $60.2 billion and $7.18. Meta expected to beat Q2 estimates as AI investments meet investor scrutiny
• Positive Sentiment: Meta’s partnership with BlackRock to develop a roughly $14 billion, one-gigawatt El Paso data center could reduce the immediate burden of its AI capital expenditures by bringing in outside financing. Meta is expected to retain operating access while holding a minority stake in the project. Meta, BlackRock partner on $14 billion El Paso data center
• Positive Sentiment: Potentially significant new revenue could come from early discussions to lease approximately $10 billion of AI computing capacity to Anthropic, offering a possible way to monetize Meta’s infrastructure investments beyond advertising. Meta in early talks to lease AI compute to Anthropic
• Neutral Sentiment: Traders are pricing a sizable post-earnings move, making the results, forward guidance and capital-expenditure outlook more important than the quarterly beat alone. Investors are particularly focused on whether Meta can show direct AI monetization and continued strength in its core advertising business. Expected Meta post-earnings move
• Neutral Sentiment: Analyst sentiment remains favorable: Erste Group raised its fiscal 2027 EPS estimate to $35.13 from $34.92, while Guggenheim reaffirmed a Buy rating with an $800 price target.
• Negative Sentiment: Investors remain concerned that Meta’s AI spending may continue rising toward $125 billion–$145 billion annually, pressuring margins and free cash flow without a clearly established AI revenue stream. Meta AI spending concerns
• Negative Sentiment: Broader risk-off trading, higher oil prices, uncertainty about the Federal Reserve’s interest-rate decision and renewed concerns about cheaper AI models are weighing on large technology stocks, including META.
• Negative Sentiment: Zuckerberg’s support for open AI models and opposition to restricting Chinese systems may encourage innovation, but it could create geopolitical and regulatory friction with Washington. Meta also faces ongoing social-media litigation and reported insider selling under a pre-arranged trading plan.

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.