Meta Platforms (NASDAQ:META) Stock Price Up 6% – Should You Buy?

Meta Platforms, Inc. (NASDAQ:META)’s stock price rose 6% during mid-day trading on Monday . The company traded as high as $597.52 and last traded at $590.24. 25,409,168 shares were traded during mid-day trading, an increase of 50% from the average daily volume of 16,995,676 shares. The stock had previously closed at $556.71.

More Meta Platforms News

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

• Positive Sentiment: AI-sector momentum lifted Meta. Strong earnings and spending plans from hyperscalers helped drive a broad rally in mega-cap AI companies, supporting Meta’s position as a major AI investor and beneficiary. Amazon Tops $3T, Meta Rallies 7% as AI Hyperscalers Ride Earnings Momentum
• Positive Sentiment: Analysts and valuation models see substantial upside. Recent commentary describes Meta as a top large-cap buy, with price targets as high as $820 and one model implying roughly 40% upside. Analysts point to strong revenue, ad-impression and ad-pricing growth, while Meta’s forward valuation remains below its five-year average. Meta Price Prediction: Analysts See 40% Upside Ahead
• Positive Sentiment: Core advertising fundamentals remain encouraging. Recent analysis highlights rising ad prices, greater user engagement and strong revenue growth, suggesting Meta’s AI investments may already be improving its core advertising business. Mark Zuckerberg Says He’s Betting Big on AI Compute Even as Meta’s Free Cash Flow Craters
• Neutral Sentiment: International revenue is an important swing factor. Meta’s dependence on overseas markets provides significant growth potential but also exposes results to currency movements, regional economic conditions and varying advertising demand. Unlocking Meta Platforms International Revenues
• Negative Sentiment: AI investment is pressuring cash flow and investor confidence. Meta’s heavy spending on computing infrastructure has reduced free cash flow, and some investors remain unconvinced that the returns will justify the scale and pace of investment. What’s Going on With Meta Stock?
• Negative Sentiment: Recent earnings and target reductions remain headwinds. Meta’s latest EPS fell short of consensus despite revenue exceeding expectations, while Bank of America and Monness Crespi & Hardt recently lowered their price targets to $810 and $730, respectively. These concerns could limit the rally if spending rises faster than monetization.

Wall Street Analyst Weigh In

Several research analysts recently commented on META shares. Scotiabank reissued a “sector perform” rating and set a $600.00 price target on shares of Meta Platforms in a research report on Thursday. Monness Crespi & Hardt lowered their price target on Meta Platforms from $890.00 to $730.00 and set a “buy” rating on the stock in a research report on Thursday. Royal Bank Of Canada reiterated an “outperform” rating and set a $810.00 price objective on shares of Meta Platforms in a research note on Monday, June 1st. The Goldman Sachs Group cut their price objective on Meta Platforms from $815.00 to $725.00 and set a “buy” rating for the company in a report on Thursday. Finally, Robert W. Baird decreased their target price on shares of Meta Platforms from $830.00 to $750.00 and set an “outperform” rating for the company in a research note on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, Meta Platforms has a consensus rating of “Moderate Buy” and an average target price of $789.95.

Meta Platforms Trading Up 6.0%

The business has a 50-day simple moving average of $601.16 and a two-hundred day simple moving average of $622.84. The stock has a market cap of $1.49 trillion, a price-to-earnings ratio of 22.23, a P/E/G ratio of 0.93 and a beta of 1.25. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

Meta Platforms (NASDAQ:META) last released its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business had revenue of $60.80 billion during the quarter, compared to the consensus estimate of $60.22 billion. During the same quarter in the prior year, the company earned $7.14 EPS. Meta Platforms’s quarterly revenue was up 28.0% on a year-over-year basis. Equities analysts forecast that Meta Platforms, Inc. will post 28.99 EPS for the current fiscal year.

Meta Platforms Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were paid a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Monday, June 15th. Meta Platforms’s dividend payout ratio is 7.91%.

Insider Buying and Selling at Meta Platforms

In other Meta Platforms news, COO Javier Olivan sold 837 shares of Meta Platforms stock in a transaction on Monday, July 27th. The shares were sold at an average price of $607.85, for a total transaction of $508,770.45. Following the completion of the transaction, the chief operating officer directly owned 6,290 shares of the company’s stock, valued at $3,823,376.50. The trade was a 11.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 500 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $607.75, for a total transaction of $303,875.00. Following the completion of the transaction, the director owned 3,443 shares in the company, valued at approximately $2,092,483.25. This represents a 12.68% decrease in their ownership of the stock. 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 have sold a total of 37,770 shares of company stock valued at $23,034,051 in the last ninety days. Insiders own 13.53% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of META. RHL Group LLC bought a new stake in Meta Platforms in the 4th quarter valued at $28,000. Advantage Trust Co bought a new position in Meta Platforms during the 2nd quarter worth $28,000. Strategic Wealth Advisors LLC acquired a new stake in shares of Meta Platforms during the fourth quarter worth $29,000. Niles Investment Management LLC acquired a new stake in shares of Meta Platforms during the fourth quarter worth $29,000. Finally, Axiom Investment Management LLC bought a new stake in shares of Meta Platforms in the first quarter valued at about $36,000. 79.91% of the stock is owned by institutional investors.

About Meta Platforms

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.