Meta Platforms (NASDAQ:META) Trading Up 2.7% – Still a Buy?

Meta Platforms, Inc. (NASDAQ:META)’s stock price was up 2.7% during trading on Monday . The stock traded as high as $668.60 and last traded at $665.60. 19,199,952 shares traded hands during trading, an increase of 13% from the average daily volume of 16,977,756 shares. The stock had previously closed at $648.03.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: New AI subscription revenue opportunity: Meta launched Meta One, with plans ranging from $2.99 to $499 per month. The service offers higher usage limits for Meta AI tools, image and video creation features, and premium functionality across Facebook, Instagram and WhatsApp. Investors view the rollout as an early step toward recurring AI revenue beyond advertising. Meta launches subscriptions with enhanced AI features
• Positive Sentiment: AI commercialization is broadening: Meta is allowing AI agents to help businesses set up and manage WhatsApp Business messaging, potentially improving monetization and adoption among commercial users. Analysts have also highlighted improving AI-driven advertising and the possibility of meaningful revenue from the Muse AI platform. Meta now lets AI agents handle WhatsApp Business setup
• Positive Sentiment: Potentially lower dependence on Nvidia: Reports say Meta plans to expand the use of cheaper, proprietary AI chips. If successful, the initiative could reduce hardware costs and supply-chain dependence while supporting Meta’s large AI infrastructure buildout. Meta plans cheaper in-house AI chips
• Neutral Sentiment: AI safety stance: CEO Mark Zuckerberg said Meta delayed its Muse AI agent for several months to address safety and security issues and favors independent evaluators and advisers rather than a broad industry slowdown. The position may reduce release-related risk, but it also underscores the regulatory and liability challenges surrounding frontier AI. Meta CEO Mark Zuckerberg on AI safety
• Neutral Sentiment: New hardware expansion: Meta reportedly plans to launch camera-free Luna smart glasses this fall, adding another potential AI and consumer-device growth avenue. Execution, adoption and privacy concerns remain uncertain. Meta camera-free smart glasses report
• Negative Sentiment: Spending and regulatory risks persist: Meta’s aggressive AI infrastructure investment is increasing fixed costs and could pressure free cash flow if advertising growth or AI utilization disappoints. Separately, California restrictions on youth-oriented advertising practices and lawsuits involving alleged facial-recognition features could create additional legal costs and regulatory risk. Meta legal and regulatory risks

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. 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 note on Thursday, July 30th. Cantor Fitzgerald reaffirmed a “neutral” rating on shares of Meta Platforms in a report on Friday. KeyCorp lowered their target price on Meta Platforms from $790.00 to $780.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Monness Crespi & Hardt dropped their price target on shares of Meta Platforms from $890.00 to $730.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Finally, Benchmark reissued a “hold” rating on shares of Meta Platforms in a report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, Meta Platforms has an average rating of “Moderate Buy” and a consensus price target of $788.88.

Meta Platforms Trading Up 0.7%

The firm has a market capitalization of $1.71 trillion, a P/E ratio of 25.24, a price-to-earnings-growth ratio of 1.15 and a beta of 1.25. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.23 and a current ratio of 2.23. The firm has a 50 day moving average price of $603.98 and a two-hundred day moving average price of $609.04.

Meta Platforms (NASDAQ:META) last announced its earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) 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 for the quarter, compared to analyst estimates of $60.22 billion. During the same period last year, the firm earned $7.14 earnings per share. The firm’s revenue for the quarter was up 28.0% on a year-over-year basis. On average, equities research analysts expect that Meta Platforms, Inc. will post 28.17 EPS for the current fiscal year.

Meta Platforms Dividend Announcement

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

Insider Buying and Selling

In related news, CAO Aaron Anderson sold 3,240 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $618.06, for a total value of $2,002,514.40. Following the completion of the sale, the chief accounting officer owned 6,271 shares in the company, valued at approximately $3,875,854.26. This represents a 34.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher K. Cox sold 20,000 shares of Meta Platforms stock in a transaction that occurred 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 transaction, the insider owned 244,516 shares in the company, valued at approximately $159,003,864.48. The trade was a 7.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 60,183 shares of company stock valued at $36,673,495. Company insiders own 13.53% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of META. Bullseye Investment Management LLC purchased a new position in shares of Meta Platforms in the second quarter valued at about $335,000. Smith Chas P & Associates PA Cpas grew its stake in shares of 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 worth $1,738,000 after purchasing an additional 45 shares during the last quarter. Talon Private Wealth LLC raised its position in Meta Platforms by 136.7% during the 2nd 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 last quarter. Marathon Wealth Advisors LLC raised its position in 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 valued at $3,952,000 after purchasing an additional 287 shares during the last quarter. Finally, Junto Capital Management LP lifted its holdings in 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 worth $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.