Meta Platforms (NASDAQ:META) Shares Down 3.3% on Analyst Downgrade

Shares of Meta Platforms, Inc. (NASDAQ:META) dropped 3.3% during mid-day trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $860.00 to $762.00. The Goldman Sachs Group currently has a buy rating on the stock. Meta Platforms traded as low as $734.29 and last traded at $737.54. Approximately 15,869,318 shares were traded during trading, a decline of 9% from the average session volume of 17,508,057 shares. The stock had previously closed at $762.50.

A number of other brokerages also recently issued reports on META. DA Davidson dropped their price target on shares of Meta Platforms from $850.00 to $700.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. TD Cowen reissued a “buy” rating and set a $865.00 target price on shares of Meta Platforms in a research note on Thursday, October 8th. New Street Research dropped their target price on shares of Meta Platforms from $730.00 to $700.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Sanford C. Bernstein restated an “outperform” rating and issued a $800.00 target price (down from $850.00) on shares of Meta Platforms in a report on Thursday, July 30th. Finally, DZ Bank reaffirmed a “buy” rating on shares of Meta Platforms in a research report on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, forty-five have assigned a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $801.53.

Insider Activity

In other news, insider Christopher K. 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 value of $28,510,400.00. Following the completion of the sale, the insider owned 184,516 shares in the company, valued at $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 available through this link. 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 on 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 transaction, the chief accounting officer owned 6,271 shares in the company, valued at $3,875,854.26. The trade was a 34.07% decrease in their position. 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 three months, insiders sold 148,222 shares of company stock worth $101,033,627. Company insiders own 13.53% of the company’s stock.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Meta’s Muse Wonder and Muse Wonder Full models are strengthening its position in the AI race. Muse Wonder scored 83.2% on an accounting benchmark, tying for second among 57 models and exceeding competing OpenAI and Google models. The launch has helped revive confidence in Meta’s ability to compete with Anthropic, OpenAI and other leading developers. Muse Wonder AI benchmark article
• Positive Sentiment: Bank of America reiterated a Buy rating and an $810 price target, while Guggenheim raised its target to $850 and highlighted Meta’s narrowing gap with Anthropic. Analysts see potential for Muse AI agents and Meta’s massive user base to create new monetization opportunities. Bank of America Meta AI outlook
• Positive Sentiment: Meta expanded WhatsApp by allowing people without accounts to join free, end-to-end encrypted voice and video calls. Removing registration, time-limit and download barriers could improve WhatsApp’s appeal to businesses and users. WhatsApp guest calling article
• Neutral Sentiment: Meta’s third-quarter results are scheduled for October 21. Investors will focus on advertising growth, AI-related capital expenditures, operating expenses and guidance.
• Negative Sentiment: Goldman Sachs lowered its price target from $860 to $762, maintaining a Buy rating but citing concerns about rising operating expenses. The reduction contrasts with bullish targets from UBS, Guggenheim and Truist, underscoring disagreement over whether future AI revenue can offset near-term investment costs. Analyst views on Meta article
• Negative Sentiment: Commentary warns that Meta’s heavy AI spending could pressure free cash flow and lead to valuation multiple compression if the upcoming earnings report does not demonstrate clear returns on investment.

Institutional Investors Weigh In On Meta Platforms

Several hedge funds and other institutional investors have recently bought and sold shares of META. Auto Owners Insurance Co grew its stake in shares of Meta Platforms by 76,587.7% in the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock valued at $69,502,379,000 after buying an additional 105,154,977 shares during the period. State Street Corp increased its position in Meta Platforms by 4.0% in the 2nd quarter. State Street Corp now owns 92,033,963 shares of the social networking company’s stock valued at $51,841,811,000 after buying an additional 3,510,123 shares in the last quarter. Bank of America Corp DE raised its stake in Meta Platforms by 14.6% during the 1st quarter. Bank of America Corp DE now owns 21,038,035 shares of the social networking company’s stock worth $12,036,491,000 after buying an additional 2,673,494 shares during the period. Invesco Ltd. raised its stake in Meta Platforms by 6.1% during the 4th quarter. Invesco Ltd. now owns 18,200,469 shares of the social networking company’s stock worth $12,013,948,000 after buying an additional 1,046,715 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Meta Platforms by 1.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 12,836,063 shares of the social networking company’s stock worth $7,230,426,000 after buying an additional 162,909 shares during the period. 79.91% of the stock is owned by institutional investors.

Meta Platforms Trading Down 3.3%

The firm has a fifty day simple moving average of $647.53 and a 200-day simple moving average of $622.44. The firm has a market cap of $1.88 trillion, a P/E ratio of 27.78, a price-to-earnings-growth ratio of 1.29 and a beta of 1.19. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

Meta Platforms (NASDAQ:META) last released its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing the consensus estimate of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The firm had revenue of $60.80 billion for the quarter, compared to the consensus estimate of $60.22 billion. During the same quarter in the prior year, the firm earned $7.14 EPS. The company’s revenue was up 28.0% compared to the same quarter last year. On average, equities research analysts expect that Meta Platforms, Inc. will post 27.94 earnings per share for the current year.

Meta Platforms Dividend Announcement

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

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.