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

Meta Platforms, Inc. (NASDAQ:METAGet Free Report) shares were up 1.3% during trading on Thursday . The company traded as high as $683.20 and last traded at $682.31. 15,620,475 shares changed hands during trading, a decline of 8% from the average daily volume of 16,963,623 shares. The stock had previously closed at $673.31.

Trending Headlines about Meta Platforms

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

  • Positive Sentiment: Meta’s Muse personal AI agent reached No. 1 on Apple’s U.S. free-app chart, surpassing ChatGPT roughly one week after launch. Its ability to handle shopping, bookings, email and phone calls could give Meta a significant consumer-AI growth platform and strengthen the case for future subscriptions or commerce revenue. Meta’s Muse tops Apple’s US free app chart
  • Positive Sentiment: Bank of America said Meta’s internally developed MTIA AI chips could save approximately $8.5 billion in 2027 by reducing reliance on third-party processors. Custom silicon could improve the economics of Meta’s expanding AI infrastructure over time. Meta Can Save $8.5 Billion in 2027 by Using Its Own MTIA Chips
  • Positive Sentiment: Analyst support and upcoming product announcements remain potential catalysts. Rosenblatt reiterated a Buy rating, while investors are looking ahead to Meta Connect on September 23 for additional AI, glasses and subscription details. Meta Earns Buy Rating from Rosenblatt Securities
  • Neutral Sentiment: Muse’s early popularity is encouraging, but analysts disagree on its financial impact. The generous free tier may accelerate adoption while delaying revenue and increasing computing costs; consumer distrust of Meta and the need to provide sensitive account data could also limit paid conversion. Meta’s Muse Agent Has Wall Street Divided on Its AI Potential
  • Negative Sentiment: Investors are taking profits after META rose roughly 23%–24% over the past month. Valuation and expectations have risen quickly, increasing sensitivity to any evidence that AI spending will not generate near-term earnings growth.
  • Negative Sentiment: Meta’s AI investment program is placing significant pressure on cash flow. Articles highlighted a more than 90% decline in free cash flow as capital expenditures rise, raising concerns about the payback period for data centers, chips and other infrastructure. Meta Versus Oracle: AI Capex Payback Velocity
  • Negative Sentiment: Legal and reputational pressure is increasing. A German court held Meta liable for fraudulent third-party ads, while regulators and its Oversight Board criticized safeguards against deepfakes and nonconsensual filming involving its smart glasses. These issues could increase compliance costs and threaten user trust. German Court Rules Meta Liable for Fake Ads
  • Negative Sentiment: Chief Product Officer Christopher Cox sold 20,000 shares worth approximately $13.5 million under a pre-arranged Rule 10b5-1 plan. The planned nature reduces the signal, but the sale may still weigh modestly on sentiment. SEC Insider Trading Filing

Wall Street Analysts Forecast Growth

META has been the topic of several research analyst reports. Phillip Securities raised Meta Platforms to a “strong-buy” rating in a research report on Monday, August 3rd. Wedbush boosted their price objective on shares of Meta Platforms from $595.00 to $650.00 and gave the company a “neutral” rating in a research report on Friday, September 11th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $810.00 target price on shares of Meta Platforms in a research report on Monday, June 1st. TD Cowen reduced their price objective on Meta Platforms from $800.00 to $750.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Finally, Wells Fargo & Company dropped their price target on Meta Platforms from $835.00 to $640.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $788.88.

Read Our Latest Stock Report on META

Meta Platforms Stock Down 2.4%

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 market capitalization of $1.70 trillion, a P/E ratio of 25.08, a PEG ratio of 1.19 and a beta of 1.25. The business’s fifty day moving average price is $606.33 and its two-hundred day moving average price is $609.79.

Meta Platforms (NASDAQ:METAGet Free Report) last issued its quarterly 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 business 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 company posted $7.14 earnings per share. The business’s revenue for the quarter was up 28.0% on a year-over-year basis. Equities analysts expect that Meta Platforms, Inc. will post 27.93 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

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

Insider Activity

In other news, COO Javier Olivan sold 946 shares of the business’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $657.73, for a total value of $622,212.58. Following the completion of the transaction, the chief operating officer owned 10,716 shares of the company’s stock, valued at $7,048,234.68. The trade was a 8.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis J. Mahoney sold 1,559 shares of the business’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 directly owned 1,957 shares of the company’s stock, valued at $1,092,006. The trade was a 44.34% 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. Over the last three months, insiders have sold 81,758 shares of company stock valued at $51,214,020. 13.53% of the stock is owned by insiders.

Hedge Funds Weigh In On Meta Platforms

A number of large investors have recently bought and sold shares of the business. Wellington Altus USA Inc. lifted its position in shares of Meta Platforms by 8.0% in the second quarter. Wellington Altus USA Inc. now owns 1,069 shares of the social networking company’s stock valued at $612,000 after acquiring an additional 79 shares in the last quarter. Bullseye Investment Management LLC purchased a new stake in shares of Meta Platforms during the second quarter worth $335,000. Smith Chas P & Associates PA Cpas lifted 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 buying an additional 45 shares in the last quarter. Talon Private Wealth LLC boosted its position in 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 worth $2,258,000 after acquiring an additional 2,315 shares during the last quarter. Finally, Marathon Wealth Advisors LLC raised its holdings in Meta Platforms by 4.3% in 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 acquiring an additional 287 shares during the last quarter. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms Company Profile

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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.

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