Meta Platforms (NASDAQ:META) Stock Falls 2.4% – Here’s Why

Meta Platforms, Inc. (NASDAQ:META) shares were down 2.4% during mid-day trading on Wednesday. The stock traded as low as $720.15 and last traded at $721.31. Approximately 12,705,485 shares were traded during trading, a decline of 27% from the average daily volume of 17,470,686 shares. The stock had previously closed at $738.88.

Key Meta Platforms News

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

• Positive Sentiment: Muse expands to iPad: Meta launched a dedicated iPad app for Muse only a month after its mobile debut. The rapid rollout and strong app-download momentum support the view that Meta is making meaningful progress in consumer AI and could eventually monetize a large user base. Meta’s Muse launches on iPad just a month after its mobile debut
• Positive Sentiment: AI-agent business standards: Meta and Sierra are working with companies including Shopify, Stripe and Walmart on the Personal Agent Protocol, intended to let consumer AI agents interact with businesses. If widely adopted, the standard could strengthen Meta’s position in AI-driven commerce and customer interactions. Meta and Sierra launch protocol for AI agents to interact with businesses
• Positive Sentiment: Higher analyst target: Wells Fargo raised its Meta price target to $1,000 from $796 while retaining an Overweight rating, citing enthusiasm for the Muse product cycle. The broader analyst consensus remains “Moderate Buy,” reinforcing bullish sentiment. Why this analyst expects Meta stock to hit $1,000
• Neutral Sentiment: Potential cloud opportunity: Investor Dan Niles suggested Meta could build a public cloud business to capitalize on AI-computing demand. This represents a potentially significant new revenue stream, but it is only a proposal and would require substantial investment and execution. Dan Niles Sees a New Way for Meta to Cash In on AI Spending
• Negative Sentiment: Legal and macroeconomic risks: New Mexico is seeking a potentially enormous penalty in litigation against Meta, with a ruling expected this month. Separately, higher interest rates could pressure technology valuations and raise the cost of Meta’s ongoing AI infrastructure spending. New Mexico Wants Meta to Pay Up to $40 Billion
• Negative Sentiment: High expectations after a rally: Meta shares had recently surged nearly 22% in a month, leaving the stock vulnerable to profit-taking if Muse engagement does not translate into recurring revenue. The company’s latest reported quarter also included an EPS miss despite strong revenue growth, adding to execution concerns.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on META. New Street Research reduced their price target on shares of Meta Platforms from $730.00 to $700.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Raymond James Financial lifted their price objective on shares of Meta Platforms from $650.00 to $860.00 and gave the stock a “strong-buy” rating in a research note on Thursday, September 24th. Jefferies Financial Group boosted their target price on shares of Meta Platforms from $710.00 to $875.00 and gave the stock a “buy” rating in a report on Tuesday, September 22nd. Deutsche Bank Aktiengesellschaft upped their target price on shares of Meta Platforms from $750.00 to $820.00 and gave the company a “buy” rating in a research report on Friday, September 25th. Finally, Tigress Financial reiterated a “strong-buy” rating and issued a $945.00 price target (down from $995.00) on shares of Meta Platforms in a research report on Thursday, September 24th. Three analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $791.86.

Meta Platforms Stock Performance

The stock has a market cap of $1.84 trillion, a P/E ratio of 27.17, a PEG ratio of 1.29 and a beta of 1.19. The business has a 50 day moving average price of $631.39 and a 200 day moving average price of $617.69. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32.

Meta Platforms (NASDAQ:META) 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 return on equity of 33.18% and a net margin of 29.83%.The business had revenue of $60.80 billion for the quarter, compared to the consensus estimate of $60.22 billion. During the same period in the prior year, the business posted $7.14 earnings per share. Meta Platforms’s revenue was up 28.0% on a year-over-year basis. As a group, sell-side analysts expect that Meta Platforms, Inc. will post 27.94 EPS for the current year.

Meta Platforms Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were given a dividend of $0.5250 per share. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Monday, September 21st. Meta Platforms’s dividend payout ratio (DPR) is 7.91%.

Insider Activity

In other Meta Platforms news, CEO Mark Zuckerberg sold 27,474 shares of the business’s stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $777.44, for a total value of $21,359,386.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 946 shares of the company’s stock in a transaction dated Monday, September 28th. The stock was sold at an average price of $750.42, for a total transaction of $709,897.32. Following the completion of the transaction, the chief operating officer owned 8,824 shares in the company, valued at $6,621,706.08. This represents a 9.68% decrease in their ownership of the stock. 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 ninety days, insiders sold 146,647 shares of company stock valued at $99,886,901. 13.53% of the stock is currently owned by company insiders.

Institutional Trading of Meta Platforms

A number of large investors have recently modified their holdings of the company. Watchman Group Inc. boosted its holdings in Meta Platforms by 0.3% in the 1st quarter. Watchman Group Inc. now owns 5,091 shares of the social networking company’s stock valued at $2,913,000 after purchasing an additional 15 shares in the last quarter. Penney Financial LLC raised its holdings in Meta Platforms by 3.9% during the first quarter. Penney Financial LLC now owns 399 shares of the social networking company’s stock worth $228,000 after purchasing an additional 15 shares during the last quarter. Barnes Pettey Financial Advisors LLC boosted its position in shares of Meta Platforms by 1.0% in the 1st quarter. Barnes Pettey Financial Advisors LLC now owns 1,519 shares of the social networking company’s stock worth $869,000 after buying an additional 15 shares in the last quarter. CWS Financial Advisors LLC raised its position in shares of Meta Platforms by 1.7% during the 1st quarter. CWS Financial Advisors LLC now owns 985 shares of the social networking company’s stock worth $564,000 after purchasing an additional 16 shares during the last quarter. Finally, Tenzing Financial LLC lifted its position in shares of Meta Platforms by 1.3% in the second quarter. Tenzing Financial LLC now owns 1,210 shares of the social networking company’s stock valued at $726,000 after acquiring an additional 16 shares in the last quarter. Hedge funds and other institutional investors own 79.91% of the company’s stock.

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.