Meta Platforms (NASDAQ:META) Shares Gap Up on Strong Earnings

Meta Platforms, Inc. (NASDAQ:META) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $668.73, but opened at $737.43. Meta Platforms shares last traded at $717.4530, with a volume of 27,414,798 shares changing hands.

The social networking company reported $8.88 EPS for the quarter, beating analysts’ consensus estimates of $8.16 by $0.72. Meta Platforms had a return on equity of 39.35% and a net margin of 30.89%.The business had revenue of $59.89 billion for the quarter, compared to analysts’ expectations of $58.33 billion. During the same quarter in the prior year, the firm earned $8.02 earnings per share. The firm’s revenue was up 23.8% on a year-over-year basis.

Meta Platforms Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 23rd. Shareholders of record on Monday, December 15th were paid a $0.525 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $2.10 annualized dividend and a yield of 0.3%. Meta Platforms’s payout ratio is currently 9.28%.

More Meta Platforms News

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

• Positive Sentiment: Q4 beat and strong guidance: Meta reported $59.9B revenue and $8.88 EPS, both above estimates, and guided Q1 revenue to $53.5B–$56.5B (well above consensus) — the primary catalyst for the rally. CNBC: Meta beats on top, bottom lines, gives stronger-than-expected forecast
• Positive Sentiment: Analyst upgrades and price?target increases: Multiple firms raised targets and ratings after the print (examples include Deutsche Bank, JPMorgan, Canaccord and others), reinforcing buy-side momentum. The Fly: Deutsche Bank price?target raise
• Positive Sentiment: Market view that AI spending is paying off for ads: Management argued AI is improving ad monetization and engagement; investors appear comfortable letting Meta fund aggressive AI infrastructure given the top?line momentum. MarketBeat: Meta soars after?hours
• Neutral Sentiment: Subscription tests across Instagram, Facebook and WhatsApp: Meta is experimenting with premium tiers and AI features — a potential long?term revenue diversifier but unclear near?term impact. CNET: Meta testing premium subscriptions
• Neutral Sentiment: Large supplier contracts validate data?center buildout: Multi?year fiber deal wins (and supplier moves) back Meta’s infrastructure plans — supports execution but underscores capital intensity. Schaeffers: Corning sees boost from Meta deal
• Negative Sentiment: Reality Labs remains a large drag: The XR unit posted roughly a $6.02B operating loss in Q4, a reminder of ongoing margin pressure from metaverse initiatives. CNBC: Reality Labs loss
• Negative Sentiment: Big increase in AI capex for 2026: Meta guided to $115B–$135B of capital spending, a step?up that raises near?term cash needs and margin risk if revenue acceleration stalls. Reuters: CapEx rise
• Negative Sentiment: XR/VR cash burn and restructuring warnings: Reporting that Reality Labs burned ~ $19B recently and still faces heavy losses adds execution and ROI uncertainty for long?dated bets. TechCrunch: $19B VR burn

Analysts Set New Price Targets

META has been the topic of a number of research analyst reports. Benchmark downgraded shares of Meta Platforms from a “buy” rating to a “hold” rating in a research report on Thursday, October 30th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $860.00 price objective (up previously from $750.00) on shares of Meta Platforms in a research report on Thursday. The Goldman Sachs Group reissued a “buy” rating on shares of Meta Platforms in a research note on Tuesday, October 14th. Stifel Nicolaus increased their price objective on shares of Meta Platforms from $785.00 to $820.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Barclays reaffirmed an “overweight” rating and issued a $800.00 target price (up from $770.00) on shares of Meta Platforms in a report on Thursday. Five analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $847.46.

Insider Buying and Selling at Meta Platforms

In other news, COO Javier Olivan sold 517 shares of Meta Platforms stock in a transaction on Monday, January 26th. The shares were sold at an average price of $665.00, for a total transaction of $343,805.00. Following the transaction, the chief operating officer owned 10,132 shares in the company, valued at $6,737,780. This trade represents a 4.85% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Robert M. Kimmitt sold 580 shares of Meta Platforms stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $618.28, for a total value of $358,602.40. Following the transaction, the director owned 5,587 shares in the company, valued at $3,454,330.36. This trade represents a 9.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 40,113 shares of company stock valued at $24,621,042. Insiders own 13.61% of the company’s stock.

Institutional Investors Weigh In On Meta Platforms

A number of institutional investors and hedge funds have recently bought and sold shares of META. Bay Colony Advisory Group Inc d b a Bay Colony Advisors boosted its holdings in shares of Meta Platforms by 0.4% during the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 3,506 shares of the social networking company’s stock valued at $2,587,000 after purchasing an additional 13 shares during the last quarter. Hemington Wealth Management lifted its position in shares of Meta Platforms by 0.6% in the second quarter. Hemington Wealth Management now owns 2,223 shares of the social networking company’s stock worth $1,641,000 after buying an additional 14 shares in the last quarter. Trust Co of the South grew its holdings in Meta Platforms by 0.8% during the 3rd quarter. Trust Co of the South now owns 1,850 shares of the social networking company’s stock valued at $1,359,000 after buying an additional 14 shares in the last quarter. Sentinel Pension Advisors LLC increased its stake in Meta Platforms by 1.6% in the 3rd quarter. Sentinel Pension Advisors LLC now owns 915 shares of the social networking company’s stock worth $672,000 after acquiring an additional 14 shares during the last quarter. Finally, Alpine Bank Wealth Management raised its holdings in shares of Meta Platforms by 0.3% during the 3rd quarter. Alpine Bank Wealth Management now owns 4,301 shares of the social networking company’s stock worth $3,159,000 after acquiring an additional 14 shares in the last quarter. 79.91% of the stock is owned by institutional investors.

Meta Platforms Stock Up 7.5%

The company has a fifty day moving average price of $646.63 and a 200-day moving average price of $695.85. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.98 and a current ratio of 1.98. The firm has a market capitalization of $1.81 trillion, a PE ratio of 31.77, a PEG ratio of 1.33 and a beta of 1.29.

About Meta Platforms

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.