Meta Platforms (NASDAQ:META) Trading Down 3.5% – Time to Sell?

Shares of Meta Platforms, Inc. (NASDAQ:META) dropped 3.5% during trading on Monday . The stock traded as low as $564.75 and last traded at $568.97. Approximately 16,921,934 shares traded hands during trading, an increase of 1% from the average session volume of 16,792,531 shares. The stock had previously closed at $589.85.

Meta Platforms News Roundup

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

• Positive Sentiment: Meta is reportedly considering selling excess data-center capacity to third parties or developing an AI cloud business, which could help monetize its substantial infrastructure spending beyond advertising. Should You Buy Meta Platforms Stock Below $600 Before Mark Zuckerberg Unveils Its AI Cloud Business?
• Neutral Sentiment: Alibaba’s release of a laptop-ready Qwen model and open weights for its most powerful model highlights intensifying competition in AI, although the near-term effect on Meta’s advertising business and AI investments is uncertain. Alibaba answers Meta’s AI challenge with new laptop-ready model
• Neutral Sentiment: Recent 13F filings may provide insight into institutional positioning in META, but the reports are backward-looking and do not establish a clear near-term trading catalyst. 13F Season: Where Wall Street’s Smart Money is Betting
• Negative Sentiment: Meta is facing a major trial brought by state attorneys general alleging that Facebook and Instagram were designed to addict young users, misled the public about potential harms, and improperly collected children’s data. The company disputes the claims. Meta faces ‘astronomical’ consequences as legal fight reaches critical moment in California
• Negative Sentiment: Plaintiffs are seeking as much as $1.4 trillion in damages, while court-ordered changes to product design, advertising, data collection, or access for younger users could create a longer-term threat to engagement and revenue. The unusually large potential liability is weighing heavily on investor sentiment. Meta trial: States allege Facebook, Instagram addicted kids
• Negative Sentiment: Investors are also questioning Meta’s AI economics: heavy data-center spending is consuming cash, while residual-value guarantees and other off-balance-sheet financing could leave the company exposed if AI infrastructure becomes unprofitable or underutilized. What Could Meta Platforms (META) Off Balance Sheet AI Financing Mean For Investors?

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Truist Financial dropped their price target on Meta Platforms from $840.00 to $770.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Citigroup reduced their price objective on Meta Platforms from $850.00 to $800.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Monness Crespi & Hardt decreased their target price on Meta Platforms from $890.00 to $730.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Wedbush cut their target price on Meta Platforms from $671.00 to $595.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Finally, Cantor Fitzgerald reduced their target price on Meta Platforms from $770.00 to $680.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $785.32.

Meta Platforms Stock Performance

The firm’s 50-day simple moving average is $595.94 and its two-hundred day simple moving average is $620.04. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $1.45 trillion, a PE ratio of 21.43, a PEG ratio of 1.01 and a beta of 1.25.

Meta Platforms (NASDAQ:META) last released its 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). The business had revenue of $60.80 billion during the quarter, compared to analysts’ expectations of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. Meta Platforms’s revenue for the quarter was up 28.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $7.14 EPS. On average, equities research analysts expect that Meta Platforms, Inc. will post 28.5 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were paid a $0.525 dividend. This represents a $2.10 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Monday, June 15th. Meta Platforms’s dividend payout ratio is currently 7.91%.

Insider Transactions at Meta Platforms

In other news, Director Robert M. Kimmitt sold 500 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $561.56, for a total value of $280,780.00. Following the completion of the sale, the director directly owned 2,943 shares of the company’s stock, valued at $1,652,671.08. This represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 1,258 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $600.00, for a total transaction of $754,800.00. Following the sale, the chief operating officer owned 1,517 shares of the company’s stock, valued at approximately $910,200. This represents a 45.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 17,772 shares of company stock valued at $10,823,658 over the last 90 days. Corporate insiders own 13.53% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in META. Vanguard Group Inc. grew its holdings in shares of Meta Platforms by 3.8% during the 4th quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock valued at $132,015,115,000 after acquiring an additional 7,269,279 shares in the last quarter. Auto Owners Insurance Co raised its holdings in shares of Meta Platforms by 76,587.7% during the fourth quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock worth $69,502,379,000 after acquiring an additional 105,154,977 shares in the last quarter. State Street Corp boosted its position in Meta Platforms by 5.1% during the fourth quarter. State Street Corp now owns 90,841,345 shares of the social networking company’s stock valued at $59,963,463,000 after purchasing an additional 4,395,763 shares during the last quarter. Geode Capital Management LLC boosted its position in Meta Platforms by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company’s stock valued at $34,734,628,000 after purchasing an additional 878,396 shares during the last quarter. Finally, Capital World Investors grew its stake in Meta Platforms by 0.8% in the fourth quarter. Capital World Investors now owns 39,558,637 shares of the social networking company’s stock valued at $26,112,735,000 after purchasing an additional 310,947 shares in the last quarter. Institutional investors and hedge funds own 79.91% of the company’s stock.

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.