Meta Platforms (NASDAQ:META) Shares Up 1.9% – Should You Buy?

Meta Platforms, Inc. (NASDAQ:META)’s share price traded up 1.9% on Monday. The stock traded as high as $746.70 and last traded at $741.90. 13,745,467 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 17,523,055 shares. The stock had previously closed at $728.08.

Meta Platforms News Roundup

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

• Positive Sentiment: Muse is gaining rapid consumer traction: Meta’s Muse app has reached the top of app-store download rankings, raising expectations that Meta could establish a major position in consumer AI. However, investors are still waiting to see whether users make the assistant part of their daily routines. Meta’s Muse assistant tops app charts. Now it needs to become a habit
• Positive Sentiment: Analyst sentiment remains favorable: Fifty-seven research firms collectively rate Meta “Moderate Buy,” including 44 buy ratings and three strong-buy ratings. Wells Fargo also raised its price target to $1,000 from $796 while maintaining an Overweight rating, citing enthusiasm for the Muse product cycle. Meta receives consensus rating of Moderate Buy Why this analyst expects Meta stock to hit $1,000
• Positive Sentiment: AI infrastructure partnerships could support long-term growth: Meta joined Walmart and Sierra in developing standards for commerce conducted through AI bots. Separately, Meta’s 20-year agreement to purchase nuclear power from Vistra supports the electricity needs of future data-center and AI operations. Meta joins group to establish AI-bot business standards
• Neutral Sentiment: Meta is testing additional video and commerce opportunities: Facebook is testing a Reels-first experience in India, while early reports suggest Muse can direct purchases away from Amazon. These initiatives could improve engagement and commerce monetization, although their financial contribution is not yet established. Facebook tests going Reels-first in India
• Negative Sentiment: Valuation and execution risks are increasing: Muse’s popularity has fueled a rapid rally, but the business model remains unproven and Meta faces substantial AI infrastructure spending. Investors may remain cautious until the company demonstrates that AI engagement can translate into meaningful revenue and profits.
• Negative Sentiment: Legal and regulatory exposure remains a concern: New Mexico could seek a penalty of up to $40 billion, while Meta is also challenging U.K. online-safety data demands. Such cases could increase costs, restrict operations or reduce funds available for AI investment. New Mexico penalty case Meta challenges UK online-safety data demands

Wall Street Analysts Forecast Growth

META has been the topic of a number of research reports. Wedbush boosted their target price on shares of Meta Platforms from $595.00 to $650.00 and gave the stock a “neutral” rating in a report on Friday, September 11th. Arete Research lifted their target price on Meta Platforms from $735.00 to $806.00 and gave the stock a “buy” rating in a report on Wednesday, September 16th. Susquehanna decreased their price target on Meta Platforms from $900.00 to $650.00 and set a “positive” rating for the company in a research report on Thursday, July 30th. New Street Research lowered their price objective on shares of Meta Platforms from $730.00 to $700.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Finally, KeyCorp raised their target price on Meta Platforms from $780.00 to $900.00 and gave the stock an “overweight” rating in a research report on Wednesday, September 23rd. Three investment analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $791.86.

Meta Platforms Stock Performance

The firm has a market cap of $1.88 trillion, a price-to-earnings ratio of 27.83, a price-to-earnings-growth ratio of 1.29 and a beta of 1.19. The firm’s 50 day moving average is $631.39 and its 200-day moving average is $617.69. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.23 and a current ratio of 2.23.

Meta Platforms (NASDAQ:META) last announced its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing analysts’ consensus estimates of $7.19 by ($1.01). Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The company had revenue of $60.80 billion during the quarter, compared to analyst estimates of $60.22 billion. During the same period in the prior year, the firm earned $7.14 EPS. Meta Platforms’s quarterly revenue was up 28.0% on a year-over-year basis. Sell-side analysts anticipate that Meta Platforms, Inc. will post 27.94 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Monday, September 21st were paid a $0.5250 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a yield of 0.3%. Meta Platforms’s dividend payout ratio (DPR) is presently 7.91%.

Insider Transactions at Meta Platforms

In other Meta Platforms news, CAO Aaron Anderson sold 3,240 shares of the business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $618.06, for a total transaction of $2,002,514.40. Following the completion of the transaction, the chief accounting officer owned 6,271 shares of the company’s stock, valued at $3,875,854.26. The trade was a 34.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher Cox sold 40,000 shares of the firm’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $712.76, for a total value of $28,510,400.00. Following the completion of the sale, the insider directly owned 184,516 shares in the company, valued at approximately $131,515,624.16. This represents a 17.82% 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. Over the last ninety days, insiders have sold 146,647 shares of company stock worth $99,886,901. Corporate insiders own 13.53% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Searcy Financial Services Inc. ADV bought a new stake in shares of Meta Platforms in the third quarter valued at approximately $248,000. Nautilus Advisors LLC increased its position in Meta Platforms by 1.1% during the third quarter. Nautilus Advisors LLC now owns 1,630 shares of the social networking company’s stock worth $1,182,000 after acquiring an additional 17 shares during the period. RVW Wealth LLC raised its stake in Meta Platforms by 2.9% during the 3rd quarter. RVW Wealth LLC now owns 1,191 shares of the social networking company’s stock valued at $864,000 after purchasing an additional 34 shares during the last quarter. Boyum Wealth Architects LLC raised its stake in Meta Platforms by 4.7% during the 3rd quarter. Boyum Wealth Architects LLC now owns 381 shares of the social networking company’s stock valued at $277,000 after purchasing an additional 17 shares during the last quarter. Finally, Ables Iannone Moore & Associates Inc. bought a new stake in Meta Platforms in the 3rd quarter valued at $250,000. 79.91% of the stock is owned by institutional investors.

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 operates a global family of apps that includes Facebook, Instagram, Messenger, WhatsApp and Threads, enabling users to connect, communicate, share content and discover communities.

Meta generates most of its business through digital advertising displayed across its platforms. Its products serve individuals, creators, businesses and organizations in markets around the world, while its advertising tools help businesses reach audiences based on factors such as interests, activity and demographics.

Through its Reality Labs division, Meta develops virtual and augmented reality hardware, software and services, including the Meta Quest line of headsets and related experiences.