Meta Platforms (NASDAQ:META) Shares Down 4.4% – Should You Sell?

Meta Platforms, Inc. (NASDAQ:META)’s stock price traded down 4.4% on Tuesday . The stock traded as low as $543.21 and last traded at $543.67. 26,601,216 shares traded hands during trading, an increase of 58% from the average daily volume of 16,831,990 shares. The stock had previously closed at $568.97.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Some analysts view Meta’s selloff as excessive, arguing that one-time legal and severance costs contributed to recent margin and earnings pressure. They expect improved margins as those costs ease and see longer-term upside from AI-enhanced advertising and WhatsApp monetization. Meta’s Dip Offers A 30% Upside Potential
• Positive Sentiment: Meta remains a major institutional and digital-advertising holding. Appaloosa’s second-quarter portfolio included Meta, while the company continues to benefit from AI tools that improve ad targeting; however, Reddit is currently viewed by one comparison as having faster ad growth and a broader expanding advertiser base. David Tepper’s Top 5 Holdings Just Revealed
• Neutral Sentiment: Analyst sentiment remains broadly constructive, with Meta receiving an average “Moderate Buy” recommendation. That support may help limit downside, but it does not remove the near-term litigation and capital-spending risks. Meta Receives Moderate Buy Recommendation
• Negative Sentiment: The 29-state case, led by four state attorneys general, could result in substantial damages—reported at up to $200 billion—and court-ordered changes to Facebook and Instagram. A ruling against Meta could also encourage additional youth-safety lawsuits and increase regulatory costs. Meta Faces 29-State Trial
• Negative Sentiment: The trial follows Meta’s nearly $1 billion loss in a similar New Mexico case, heightening investor concern that the company could face a broader pattern of adverse judgments. The allegations center on child mental-health harms, privacy protections and potentially addictive product design. Meta Faces 29 States in Court
• Negative Sentiment: Investors are also questioning Meta’s heavy AI infrastructure spending. The company is among several technology firms driving a sharp increase in AI-related bond issuance, while rising costs and weaker free-cash-flow generation amplify concerns about leverage, returns on investment and future margins. AI Borrowing Binge

Analysts Set New Price Targets

META has been the topic of a number of recent analyst reports. Cantor Fitzgerald lowered their price target on shares of Meta Platforms from $770.00 to $680.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Bank of America decreased their price objective on shares of Meta Platforms from $835.00 to $810.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Guggenheim reissued a “buy” rating and set a $800.00 target price on shares of Meta Platforms in a research note on Tuesday, July 28th. BNP Paribas Exane began coverage on Meta Platforms in a research report on Tuesday, June 2nd. They set an “outperform” rating on the stock. Finally, Weiss Ratings lowered Meta Platforms from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, June 26th. Four research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $785.32.

Meta Platforms Price Performance

The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. The stock’s 50-day simple moving average is $595.62 and its two-hundred day simple moving average is $619.31. The company has a market capitalization of $1.39 trillion, a price-to-earnings ratio of 20.48, a PEG ratio of 1.01 and a beta of 1.25.

Meta Platforms (NASDAQ:META) last announced its earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.19 by ($1.01). The company had revenue of $60.80 billion during the quarter, compared to analyst estimates of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The firm’s revenue for the quarter was up 28.0% compared to the same quarter last year. During the same quarter last year, the business earned $7.14 EPS. Equities research analysts predict that Meta Platforms, Inc. will post 28.5 earnings per share for the current year.

Meta Platforms Announces Dividend

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

Insider Buying and Selling at Meta Platforms

In other Meta Platforms news, COO Javier Olivan sold 3,348 shares of the firm’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $600.97, for a total value of $2,012,047.56. Following the transaction, the chief operating officer owned 9,498 shares in the company, valued at approximately $5,708,013.06. This trade represents a 26.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis J. Mahoney sold 2,079 shares of Meta Platforms stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $609.92, for a total transaction of $1,268,023.68. Following the sale, the insider directly owned 1,118 shares in the company, valued at approximately $681,890.56. This trade represents a 65.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 17,772 shares of company stock valued at $10,823,658. 13.53% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of META. Ashton Thomas Securities LLC increased its holdings in Meta Platforms by 17.4% in the first quarter. Ashton Thomas Securities LLC now owns 18,000 shares of the social networking company’s stock valued at $10,299,000 after buying an additional 2,670 shares during the last quarter. Keybank National Association OH lifted its holdings in Meta Platforms by 15.7% during the 4th quarter. Keybank National Association OH now owns 133,798 shares of the social networking company’s stock worth $88,319,000 after buying an additional 18,169 shares during the last quarter. WMS Group LLC acquired a new position in shares of Meta Platforms during the 4th quarter worth about $876,000. Consolidated Investment Group LLC boosted its position in shares of Meta Platforms by 61.2% during the 4th quarter. Consolidated Investment Group LLC now owns 7,900 shares of the social networking company’s stock worth $5,215,000 after acquiring an additional 3,000 shares in the last quarter. Finally, Vanguard Group Inc. increased its holdings in shares of Meta Platforms by 3.8% in 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 during the last quarter. 79.91% of the stock is owned by hedge funds and other institutional investors.

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.