Meta Platforms (NASDAQ:META) Trading 2.5% Higher – Here’s What Happened

Meta Platforms, Inc. (NASDAQ:META)’s share price traded up 2.5% during mid-day trading on Wednesday . The stock traded as high as $600.38 and last traded at $592.85. Approximately 15,660,742 shares changed hands during trading, a decline of 7% from the average daily volume of 16,797,879 shares. The stock had previously closed at $578.54.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Meta’s approximately $17 billion–$18 billion settlement with U.S. states over alleged harm to children removes a significant legal uncertainty. Analysts say limits on teen usage are unlikely to materially affect revenue, while the clearer legal backdrop could support a valuation recovery. The Social Media Trial Settlement Is A Major Win For Meta
• Positive Sentiment: Morgan Stanley said settling the case could clear the way for Meta to accelerate new AI product launches, potentially creating a catalyst similar to post-litigation product rollouts at other technology companies. Meta settlement could clear the way for new AI product launches
• Positive Sentiment: Analysts continue to argue that Meta is undervalued, citing roughly 28% quarterly revenue growth, resilient user engagement, AI-driven advertising gains and a forward earnings multiple well below its long-term average. One analyst sees as much as 40% upside if the settlement and AI investments improve investor sentiment. Meta stock looks undervalued
• Neutral Sentiment: Wedbush reaffirmed its “neutral” rating and set a $595 price target, indicating limited near-term upside at current levels. Meta analyst rating
• Negative Sentiment: The bullish legal and AI narrative is partly offset by margin pressure and sharply lower free cash flow as Meta increases capital expenditures for AI infrastructure. The settlement also represents a substantial cash cost. The Social Media Trial Settlement Is A Major Win For Meta
• Negative Sentiment: Meta disabled cameras on thousands of AI glasses after detecting tampering with recording lights, highlighting privacy and product-reputation risks as the company expands its wearable AI business. Meta bricked the cameras on thousands of its AI glasses

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Robert W. Baird dropped their price target 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, July 30th. Raymond James Financial increased their price objective on Meta Platforms from $825.00 to $850.00 and gave the stock a “strong-buy” rating in a research report on Tuesday, July 21st. BNP Paribas Exane assumed coverage on Meta Platforms in a research note on Tuesday, June 2nd. They set an “outperform” rating for the company. Benchmark restated a “hold” rating on shares of Meta Platforms in a research report on Thursday, August 27th. Finally, Citizens Jmp lowered their price target on Meta Platforms from $800.00 to $770.00 and set a “market outperform” rating for the company in a report on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $785.22.

Meta Platforms Trading Up 2.5%

The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. The business has a 50-day simple moving average of $592.78 and a 200-day simple moving average of $609.82. The company has a market cap of $1.51 trillion, a PE ratio of 22.33, a price-to-earnings-growth ratio of 0.99 and a beta of 1.25.

Meta Platforms (NASDAQ:META) last released its quarterly 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). The firm had revenue of $60.80 billion for the quarter, compared to analysts’ expectations of $60.22 billion. Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The company’s quarterly revenue was up 28.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $7.14 earnings per share. On average, analysts predict that Meta Platforms, Inc. will post 28.17 EPS for the current fiscal year.

Insider Transactions at Meta Platforms

In other news, insider Curtis J. Mahoney sold 1,559 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total value of $869,922.00. Following the completion of the transaction, the insider owned 1,957 shares of the company’s stock, valued at approximately $1,092,006. This trade represents a 44.34% 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, CTO Andrew Bosworth sold 7,848 shares of Meta Platforms stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total transaction of $4,379,184.00. Following the completion of the transaction, the chief technology officer owned 828 shares of the company’s stock, valued at $462,024. This trade represents a 90.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 32,987 shares of company stock valued at $19,202,995. 13.53% of the stock is owned by insiders.

Hedge Funds Weigh In On Meta Platforms

Several institutional investors have recently modified their holdings of META. First National Bank Sioux Falls boosted its stake in shares of Meta Platforms by 0.7% in the 4th quarter. First National Bank Sioux Falls now owns 2,001 shares of the social networking company’s stock valued at $1,321,000 after buying an additional 14 shares during the period. Levin Capital Strategies L.P. lifted its holdings in Meta Platforms by 1.4% during the 4th quarter. Levin Capital Strategies L.P. now owns 984 shares of the social networking company’s stock worth $649,000 after buying an additional 14 shares during the last quarter. Vista Capital Partners Inc. increased its holdings in shares of Meta Platforms by 1.3% in the 2nd quarter. Vista Capital Partners Inc. now owns 1,075 shares of the social networking company’s stock valued at $794,000 after acquiring an additional 14 shares during the last quarter. Acorn Creek Capital LLC increased its holdings in shares of Meta Platforms by 0.7% in the 4th quarter. Acorn Creek Capital LLC now owns 2,118 shares of the social networking company’s stock valued at $1,398,000 after acquiring an additional 15 shares during the last quarter. Finally, Objective Capital Management LLC raised its position in shares of Meta Platforms by 2.8% during the 4th quarter. Objective Capital Management LLC now owns 553 shares of the social networking company’s stock worth $365,000 after acquiring an additional 15 shares in the last quarter. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms Company Profile

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.