Meta Platforms (NASDAQ:META) Shares Up 2% – Still a Buy?

Meta Platforms, Inc. (NASDAQ:META) rose 2% during mid-day trading on Thursday. The stock traded as high as $634.68 and last traded at $624.52. 30,886,416 shares traded hands during mid-day trading, an increase of 71% from the average session volume of 18,042,857 shares. The stock had previously closed at $612.49.

Key Meta Platforms News

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

• Positive Sentiment: AMD partnership strengthens Meta’s AI build-out. Advanced Micro Devices plans to invest $1 billion in Meta’s equity offering, while the companies will co-design multiple generations of AI chips for Meta’s gigawatt-scale data centers. The agreement could improve hardware diversification, efficiency and long-term supply-chain security. Advanced Micro Devices’ Meta Platforms Partnership Goes Beyond a $1 Billion Investment
• Positive Sentiment: Advertising fundamentals remain supportive. Recent coverage points to higher ad pricing, rising impressions and AI-driven improvements in ad conversions and Reels engagement. Analysts also remain constructive, with Daiwa raising its price target to $779 from $687. Daiwa Securities Adjusts Price Target on Meta Platforms
• Positive Sentiment: Meta outperformed weaker social-media peers. Shares showed relative strength as investors grew cautious about Reddit, Snap and Pinterest, while Alphabet’s selloff highlighted concerns about AI spending that did not immediately undermine Meta’s stock. Social-Media Stocks Market Coverage
• Neutral Sentiment: Political activity could create reputational or regulatory risk. A Zuckerberg-backed super PAC contributed nearly $1 million to Xavier Becerra’s California gubernatorial campaign, potentially drawing additional scrutiny to Meta’s political influence and spending. Meta Super PAC California Campaign Contribution
• Negative Sentiment: Funding and spending remain the main overhangs. Meta’s roughly $98 billion financing plan for AI infrastructure raises dilution concerns, while elevated capital expenditures have pushed free cash flow negative and could limit buybacks and dividend growth. Additional legal exposure from youth-safety litigation and uncertainty surrounding Muse’s costs add risk. Meta Reports Negative Free Cash Flow

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on META shares. Mizuho raised their price target on shares of Meta Platforms from $750.00 to $950.00 and gave the stock an “outperform” rating in a report on Thursday, October 22nd. Bank of America upped their target price on Meta Platforms from $810.00 to $845.00 and gave the company a “buy” rating in a research report on Thursday, October 22nd. 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 research note on Thursday, July 30th. Barclays lifted their price target on Meta Platforms from $780.00 to $880.00 and gave the stock an “overweight” rating in a research report on Thursday, October 22nd. Finally, Erste Group Bank upgraded Meta Platforms from a “hold” rating to a “buy” rating in a research note on Tuesday, July 7th. Three analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $833.12.

Meta Platforms Price Performance

The firm has a market cap of $1.59 trillion, a PE ratio of 21.30, a price-to-earnings-growth ratio of 1.12 and a beta of 1.19. The stock has a 50 day simple moving average of $667.08 and a two-hundred day simple moving average of $632.53. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.90 and a current ratio of 1.90.

Meta Platforms (NASDAQ:META) last posted its earnings results on Thursday, October 22nd. The social networking company reported $7.40 EPS for the quarter, topping the consensus estimate of $6.54 by $0.86. Meta Platforms had a return on equity of 30.73% and a net margin of 31.15%. The firm had revenue of $64.60 billion for the quarter, compared to analyst estimates of $63.34 billion. During the same period last year, the company earned $7.25 earnings per share. Meta Platforms’s revenue for the quarter was up 26.1% compared to the same quarter last year. Sell-side analysts expect that Meta Platforms, Inc. will post 28.98 earnings per share for the current year.

Meta Platforms Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were given a $0.5250 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. Meta Platforms’s payout ratio is 7.16%.

Insider Activity at Meta Platforms

In other news, CTO Andrew Bosworth sold 7,848 shares of Meta Platforms stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total value of $4,379,184.00. Following the sale, the chief technology officer owned 828 shares in the company, valued at $462,024. This trade represents a 90.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Zuckerberg sold 27,474 shares of Meta Platforms stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $777.44, for a total value of $21,359,386.56. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 150,015 shares of company stock valued at $102,464,300 in the last three months. Company insiders own 13.53% of the company’s stock.

Hedge Funds Weigh In On Meta Platforms

A number of institutional investors have recently added to or reduced their stakes in the stock. Horizons Wealth Management acquired a new position in Meta Platforms during the third quarter worth $33,000. Advantage Trust Co acquired a new position in shares of Meta Platforms in the second quarter valued at approximately $28,000. Philadelphia Investment Partners LLC acquired a new stake in Meta Platforms during the 2nd quarter worth approximately $32,000. Axiom Investment Management LLC purchased a new position in Meta Platforms in the 1st quarter valued at approximately $36,000. Finally, Schuylkill Financial LLC acquired a new position in shares of Meta Platforms in the second quarter worth $36,000. Hedge funds and other institutional investors own 79.91% of the company’s stock.

Meta Platforms Company Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company’s principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.