Meta Platforms (NASDAQ:META) Trading Up 1.3% – Time to Buy?

Meta Platforms, Inc. (NASDAQ:META)’s stock price rose 1.3% on Thursday . The stock traded as high as $683.20 and last traded at $682.31. Approximately 15,620,475 shares were traded during mid-day trading, a decline of 8% from the average session volume of 16,963,623 shares. The stock had previously closed at $673.31.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: AI agent momentum: Meta’s Muse AI agent is attracting significant attention following its launch, with reports highlighting strong download activity and the potential to create recurring revenue through paid AI features. Muse is also adding voice-call capabilities and could expand into AI-powered shopping. Meta Muse May Be Biggest AI Launch Since ChatGPT
• Positive Sentiment: New monetization opportunities: Meta One subscription plans bundle enhanced features across Facebook, Instagram and WhatsApp, while AI agents for WhatsApp Business could support commercial revenue growth. Analysts see AI agents, cloud computing and business AI as potential growth engines beyond advertising. Meta Tests AI as the Upsell for Free Social Media
• Positive Sentiment: Lower AI infrastructure costs: Bank of America estimates Meta could save approximately $8.5 billion in 2027 by using its own MTIA chips for AI workloads, reducing reliance on third-party suppliers such as Nvidia. Meta Can Save $8.5 Billion in 2027 by Using Its Own MTIA Chips
• Positive Sentiment: Analyst and technical support: Citi and Rosenblatt reiterated bullish views, with Rosenblatt assigning an $886 price target. Meta Connect on September 23 is viewed as a near-term catalyst for additional AI and hardware announcements. Meta Event Next Week Could Spark Stock Gains
• Neutral Sentiment: Meta reportedly plans camera-free smart glasses, potentially addressing privacy concerns but adding execution risk to its hardware strategy. Meta Plans Camera-Free Smart Glasses
• Negative Sentiment: A German court ruled Meta liable for fraudulent third-party advertisements on Facebook and Instagram, ordering damages and content removal. The decision could increase legal costs and platform-moderation obligations. German Court Rules Meta Liable for Fake Ads
• Negative Sentiment: COO Javier Olivan disclosed sales of Meta shares under a pre-arranged Rule 10b5-1 plan, a modest negative sentiment signal but not necessarily an indication of a change in business outlook.
• Negative Sentiment: BMO identified expanding global age-verification requirements as an emerging regulatory risk for Meta’s social-media platforms.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on META. Piper Sandler restated an “overweight” rating and issued a $785.00 price target (down from $800.00) on shares of Meta Platforms in a research note on Thursday, July 30th. Guggenheim reissued a “buy” rating and issued a $800.00 price objective on shares of Meta Platforms in a research note on Tuesday, July 28th. Sanford C. Bernstein restated an “outperform” rating and issued a $800.00 target price on shares of Meta Platforms in a research report on Thursday, July 30th. Raymond James Financial upped their price target on shares of Meta Platforms from $825.00 to $850.00 and gave the stock a “strong-buy” rating in a report on Tuesday, July 21st. Finally, Wells Fargo & Company cut their price objective on Meta Platforms from $835.00 to $640.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $788.88.

Meta Platforms Trading Up 1.4%

The company has a market cap of $1.74 trillion, a P/E ratio of 25.71, a PEG ratio of 1.16 and a beta of 1.25. The firm’s 50 day moving average is $605.39 and its two-hundred day moving average is $609.16. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32.

Meta Platforms (NASDAQ:META) last announced its earnings results on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $60.22 billion. During the same period in the previous year, the firm posted $7.14 earnings per share. The firm’s quarterly revenue was up 28.0% compared to the same quarter last year. As a group, equities research analysts anticipate that Meta Platforms, Inc. will post 28.17 EPS for the current year.

Meta Platforms Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Monday, September 21st will be issued a $0.525 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.10 annualized dividend and a yield of 0.3%. Meta Platforms’s dividend payout ratio is presently 7.91%.

Insider Activity

In other news, CFO Susan Li sold 9,196 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $550.61, for a total value of $5,063,409.56. Following the transaction, the chief financial officer owned 13,186 shares in the company, valued at approximately $7,260,343.46. The trade was a 41.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher Cox sold 20,000 shares of the stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $650.28, for a total transaction of $13,005,600.00. Following the sale, the insider owned 244,516 shares of the company’s stock, valued at approximately $159,003,864.48. This trade represents a 7.56% 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. In the last quarter, insiders have sold 61,758 shares of company stock worth $37,709,420. 13.53% of the stock is owned by insiders.

Hedge Funds Weigh In On Meta Platforms

Several institutional investors have recently added to or reduced their stakes in META. Bullseye Investment Management LLC bought a new stake in shares of Meta Platforms in the 2nd quarter valued at $335,000. Smith Chas P & Associates PA Cpas increased its stake in Meta Platforms by 1.5% in the second quarter. Smith Chas P & Associates PA Cpas now owns 3,086 shares of the social networking company’s stock valued at $1,738,000 after purchasing an additional 45 shares in the last quarter. Talon Private Wealth LLC raised its holdings in shares of Meta Platforms by 136.7% during the second quarter. Talon Private Wealth LLC now owns 4,008 shares of the social networking company’s stock valued at $2,258,000 after purchasing an additional 2,315 shares during the period. Marathon Wealth Advisors LLC boosted its position in shares of Meta Platforms by 4.3% during the 2nd quarter. Marathon Wealth Advisors LLC now owns 7,016 shares of the social networking company’s stock worth $3,952,000 after purchasing an additional 287 shares in the last quarter. Finally, Junto Capital Management LP grew its stake in shares of Meta Platforms by 104.1% in the 2nd quarter. Junto Capital Management LP now owns 110,841 shares of the social networking company’s stock valued at $62,436,000 after buying an additional 56,537 shares during the period. 79.91% of the stock is owned by institutional investors and hedge funds.

About Meta Platforms

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company’s principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.