Meta Platforms (NASDAQ:META) Stock Price Down 5.4% – Here’s What Happened

Shares of Meta Platforms, Inc. (NASDAQ:META) were down 5.4% during trading on Wednesday . The company traded as low as $566.19 and last traded at $567.58. Approximately 19,892,483 shares were traded during trading, an increase of 22% from the average daily volume of 16,246,023 shares. The stock had previously closed at $600.21.

Meta Platforms News Summary

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

• Positive Sentiment: Meta said Threads has reached 500 million monthly active users, and it is rolling out new features such as Communities, custom app icons, and expanded feed controls — a sign that its social ecosystem is still growing and could support longer-term ad monetization. Reuters: Meta’s Threads reaches 500 million monthly users, rolls out new features
• Positive Sentiment: Meta is expanding AI-driven products on Facebook, including an “AI mode” search tool and creative features that could improve engagement and open a new monetization opportunity, according to analysts. Proactive Investors: Meta introduces AI search and creative tools, Bank of America flags emerging monetization opportunity
• Neutral Sentiment: Wall Street commentary remains generally constructive, with some analysts still backing Meta’s AI strategy as a growth catalyst, but the articles do not indicate a new rating change that would materially move the stock on its own. Zacks: Wall Street Bulls Look Optimistic About Meta Platforms (META): Should You Buy?
• Negative Sentiment: Reuters reported that a Meta executive overseeing an important part of the company’s AI-for-work restructuring is leaving, which adds a leadership and execution risk at a sensitive time for Meta’s AI pivot. Reuters: Exclusive: Meta head of product for ‘AI for work’ transformation is leaving company
• Negative Sentiment: Several pieces highlighted concerns that META is expensive relative to sales and that its aggressive AI spending, along with Reality Labs losses, could pressure returns if monetization lags. Zacks: Meta Platforms is Overvalued at 5.5X PS: Buy, Sell or Hold the Stock?
• Negative Sentiment: Broader AI-stock skepticism is also weighing on sentiment, with high-profile investors and commentators comparing the current AI capex boom to the dot-com era and warning that big-tech AI stocks could underperform if the cycle cools. 247WallSt: Legendary Short Seller Jim Chanos Issues Dire Prediction

Analyst Ratings Changes

A number of analysts have recently commented on META shares. Wolfe Research dropped their target price on shares of Meta Platforms from $850.00 to $800.00 and set an “outperform” rating on the stock in a report on Friday, April 10th. The Goldman Sachs Group cut shares of Meta Platforms from a “buy” rating to a “sell” rating in a report on Tuesday, June 2nd. Barclays boosted their target price on shares of Meta Platforms from $800.00 to $830.00 and gave the company an “overweight” rating in a report on Thursday, April 30th. Erste Group Bank cut shares of Meta Platforms from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. Finally, Sanford C. Bernstein dropped their target price on shares of Meta Platforms from $900.00 to $850.00 and set an “outperform” rating on the stock in a report on Thursday, April 30th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $840.60.

Meta Platforms Trading Down 5.4%

The firm has a 50-day moving average price of $622.04 and a 200-day moving average price of $635.51. The company has a debt-to-equity ratio of 0.24, a quick ratio of 2.35 and a current ratio of 2.35. The stock has a market cap of $1.44 trillion, a PE ratio of 20.63, a price-to-earnings-growth ratio of 1.05 and a beta of 1.23.

Meta Platforms (NASDAQ:META) last posted its quarterly earnings results on Wednesday, April 29th. The social networking company reported $10.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.67 by $3.77. The firm had revenue of $56.31 billion during the quarter, compared to analyst estimates of $55.56 billion. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.Meta Platforms’s quarterly revenue was up 33.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $6.43 EPS. As a group, equities analysts anticipate that Meta Platforms, Inc. will post 29.35 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Monday, June 15th will be given a $0.525 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. Meta Platforms’s payout ratio is 7.63%.

Insiders Place Their Bets

In other Meta Platforms news, CFO Susan J. Li sold 9,195 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $607.84, for a total value of $5,589,088.80. Following the completion of the transaction, the chief financial officer owned 13,186 shares of the company’s stock, valued at approximately $8,014,978.24. The trade was a 41.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Curtis J. Mahoney sold 2,079 shares of the business’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $609.92, for a total value of $1,268,023.68. Following the completion of the transaction, the insider directly owned 1,118 shares of the company’s stock, valued at approximately $681,890.56. This trade represents a 65.03% 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. Insiders sold a total of 39,170 shares of company stock worth $24,218,565 in the last 90 days. Corporate insiders own 13.53% of the company’s stock.

Hedge Funds Weigh In On Meta Platforms

Hedge funds have recently bought and sold shares of the business. Westchester Capital Management Inc. purchased a new stake in shares of Meta Platforms during the 3rd quarter valued at about $26,000. RHL Group LLC purchased a new stake in shares of Meta Platforms during the 4th quarter valued at about $28,000. Strategic Wealth Advisors LLC purchased a new stake in shares of Meta Platforms during the 4th quarter valued at about $29,000. Niles Investment Management LLC purchased a new stake in shares of Meta Platforms during the 4th quarter valued at about $29,000. Finally, Axiom Investment Management LLC purchased a new stake in shares of Meta Platforms during the 1st quarter valued at about $36,000. Hedge funds and other institutional investors 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.