Meta Platforms (NASDAQ:META) Shares Climb 1.4% – Still a Buy?

Meta Platforms, Inc. (NASDAQ:META)’s share price was up 1.4% during mid-day trading on Wednesday. The company traded as high as $643.09 and last traded at $630.00. Approximately 32,183,875 shares traded hands during trading, an increase of 78% from the average daily volume of 18,109,389 shares. The stock had previously closed at $621.03.

Meta Platforms News Summary

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

• Positive Sentiment: Meta’s U.S. bond sale attracted about $58 billion in orders, substantially more than the amount it sought to raise. The company raised $15 billion, while its debut euro-bond sale also drew record orders. Strong demand suggests investors remain willing to fund Meta’s expansion. Reuters: Meta raises $15 billion in five-part US bond sale Reuters: Meta draws record orders for debut euro bond sale
• Positive Sentiment: Investor Bill Ackman called META “incredibly undervalued,” arguing that the company’s AI spending can create value. That view may help reassure investors worried that infrastructure costs will outweigh future returns. Yahoo Finance: Bill Ackman on Meta’s AI spending and valuation
• Neutral Sentiment: Meta is seeking roughly $9.2 billion through euro-denominated bonds spanning maturities from four to 38 years, adding to its U.S. borrowing to finance AI investment. The fundraising supports expansion but increases the company’s debt and financing commitments. The Wall Street Journal: Meta seeks to raise $9.2 billion in debut euro bond sale
• Negative Sentiment: Strong demand did not eliminate the cost of borrowing: a report said Meta agreed to a 7.5% yield on a 30-year bond. That expense highlights investor concerns about the enormous funding needs of AI and data-center expansion. 24/7 Wall St.: Meta’s 30-year borrowing cost and bond demand
• Negative Sentiment: Reports also flag possible tighter rules for data-center developers, including Meta. Any new restrictions could complicate or raise the cost of building the infrastructure needed for its AI plans. Yahoo Finance: Data center developers may face tighter rules

Analysts Set New Price Targets

Several research analysts have recently weighed in on META shares. DZ Bank reissued a “buy” rating on shares of Meta Platforms in a research report on Thursday, July 30th. Cantor Fitzgerald raised their price objective on shares of Meta Platforms from $840.00 to $860.00 and gave the company an “overweight” rating in a research note on Thursday, October 22nd. Benchmark restated a “hold” rating on shares of Meta Platforms in a report on Thursday, August 27th. China Renaissance cut their target price on Meta Platforms from $825.00 to $700.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Finally, President Capital raised Meta Platforms from a “neutral” rating to a “buy” rating and boosted their target price for the company from $660.00 to $897.00 in a report on Thursday, September 24th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $833.12.

Meta Platforms Price Performance

The company has a 50 day moving average price of $672.41 and a 200 day moving average price of $632.16. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.30. The firm has a market cap of $1.61 trillion, a PE ratio of 21.48, a price-to-earnings-growth ratio of 1.05 and a beta of 1.28.

Meta Platforms (NASDAQ:META) last announced its quarterly earnings results on Thursday, October 22nd. The social networking company reported $7.40 earnings per share for the quarter, beating analysts’ consensus estimates of $6.54 by $0.86. Meta Platforms had a return on equity of 30.73% and a net margin of 31.15%. The business had revenue of $64.60 billion during the quarter, compared to analysts’ expectations of $63.34 billion. During the same quarter last year, the business posted $7.25 earnings per share. The business’s revenue for the quarter was up 26.1% on a year-over-year basis. On average, sell-side analysts expect that Meta Platforms, Inc. will post 29.01 EPS for the current year.

Meta Platforms Announces Dividend

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

Insider Buying and Selling

In related news, CTO Andrew Bosworth sold 7,848 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total value of $4,379,184.00. Following the completion of the transaction, the chief technology officer directly owned 828 shares in the company, valued at approximately $462,024. This represents a 90.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Zuckerberg sold 27,474 shares of the company’s stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $777.44, for a total transaction of $21,359,386.56. 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 149,515 shares of company stock worth $102,183,520 in the last 90 days. 13.53% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Meta Platforms

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Texas Bank & Trust Co raised its position in Meta Platforms by 3.3% during the third quarter. Texas Bank & Trust Co now owns 1,415 shares of the social networking company’s stock valued at $1,026,000 after purchasing an additional 45 shares in the last quarter. Gryphon Financial Partners LLC boosted its holdings in shares of Meta Platforms by 1.8% in the 3rd quarter. Gryphon Financial Partners LLC now owns 32,340 shares of the social networking company’s stock worth $23,452,000 after purchasing an additional 583 shares in the last quarter. Leuthold Group LLC boosted its holdings in shares of Meta Platforms by 9.6% in the 3rd quarter. Leuthold Group LLC now owns 20,939 shares of the social networking company’s stock worth $15,185,000 after purchasing an additional 1,838 shares in the last quarter. Palacios Wealth Management LLC increased its position in shares of Meta Platforms by 2.2% during the 3rd quarter. Palacios Wealth Management LLC now owns 7,982 shares of the social networking company’s stock valued at $5,788,000 after purchasing an additional 172 shares during the last quarter. Finally, Kohmann Bosshard Financial Services LLC raised its holdings in shares of Meta Platforms by 5.6% during the 3rd quarter. Kohmann Bosshard Financial Services LLC now owns 2,514 shares of the social networking company’s stock valued at $1,822,000 after buying an additional 134 shares in the last quarter. 79.91% of the stock is owned by institutional investors and hedge funds.

About Meta Platforms

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.