Meta Platforms (NASDAQ:META) Announces Quarterly Earnings Results

Meta Platforms (NASDAQ:META) issued its quarterly earnings data on Wednesday. The social networking company reported $8.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $8.16 by $0.72, Zacks reports. Meta Platforms had a net margin of 30.08% and a return on equity of 39.91%. The firm had revenue of $59.89 billion during the quarter, compared to analysts’ expectations of $58.33 billion. During the same period last year, the company earned $8.02 earnings per share. The business’s revenue was up 23.8% on a year-over-year basis.

Here are the key takeaways from Meta Platforms’ conference call:

• Meta reported continued scale in engagement with more than 3.5 billion daily users, including over 2 billion daily actives each on Facebook and WhatsApp and Instagram close behind.
• Q4 results were strong—consolidated revenue of $59.9 billion (+24% YoY), family-of-apps ad revenue +24%, impressions +18% and operating income of $24.7 billion, driven by holiday demand and AI-driven ad performance gains.
• Management is accelerating AI product work—rebuilt AI foundations, launching Meta Superintelligence Labs models and integrating LLMs with recommendation systems to enable personalized “agents,” new media formats, and commerce features that could create new monetization streams.
• Meta plans a large infrastructure push in 2026 with guidance for full-year expenses of $162–$169 billion and CapEx of $115–$135 billion; management expects operating income above 2025 but this materially increases near-term spending and capital intensity.

Meta Platforms Stock Performance

META traded down $12.75 during trading on Friday, hitting $725.56. 3,937,579 shares of the company traded hands, compared to its average volume of 17,142,887. Meta Platforms has a one year low of $479.80 and a one year high of $796.25. The stock’s fifty day moving average is $649.61 and its 200 day moving average is $696.14. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 0.15. The firm has a market cap of $1.83 trillion, a P/E ratio of 30.94, a price-to-earnings-growth ratio of 1.33 and a beta of 1.29.

Meta Platforms Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 23rd. Investors of record on Monday, December 15th were issued a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend was Monday, December 15th. Meta Platforms’s payout ratio is 8.94%.

Meta Platforms News Roundup

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

• Positive Sentiment: Q4 results and guidance beat expectations: Meta reported $8.88 EPS and ~$59.9B revenue, and guided Q1 revenue above consensus ($53.5B–$56.5B), which investors interpret as evidence AI improvements are lifting ad monetization — a key reason the stock rose. CNBC: Meta beats on top, bottom lines, gives stronger-than-expected forecast
• Positive Sentiment: Wall Street is upgrading price targets and reclassifying Meta as a buy in multiple notes after the print, reinforcing momentum and driving fresh analyst-driven demand. Benzinga: Analyst price target updates
• Positive Sentiment: Coverage and trade commentary highlight early signs that Meta’s AI work is paying off for core ads (better targeting, higher engagement), supporting the bull case despite higher spending. WSJ: Meta spending on AI paying off
• Neutral Sentiment: Local PR/CSR item: Meta committed $50M to Sac State downtown center — reputational/community news with little direct market impact. BizJ: Meta commits $50M to Sac State
• Neutral Sentiment: Reports that Meta’s platforms are blocking certain ICE-list links may raise moderation/policy headlines but unclear near-term financial impact. MSN: Platforms blocking links to ICE list
• Negative Sentiment: Legal risk: Meta faces a New Mexico trial next week alleging the company exposed minors to sexual exploitation on its platforms — the first jury case of its kind and a potential reputational and regulatory overhang. Reuters: New Mexico trial over child-exploitation claims
• Negative Sentiment: Reality Labs remains a heavy drag: Q4 operating loss ~ $6.02B and prior reporting of ~$19B VR losses highlight ongoing margin pressure and cash burn in non-ad businesses. CNBC: Reality Labs loss TechCrunch: $19B VR burn
• Negative Sentiment: CapEx shock: management forecasted an unprecedented $115B–$135B AI capex plan for 2026 — investors praised revenue traction but some remain concerned about front‑loaded spending and margin risk. Reuters: CapEx rise
• Negative Sentiment: Minor insider selling by COO Javier Olivan (small amount relative to holdings) was disclosed — typically a neutral-to-negative signal for sentiment‑sensitive traders. SEC filing: Olivan sale

Insider Transactions at Meta Platforms

In other Meta Platforms news, Director Robert M. Kimmitt sold 600 shares of the stock in a transaction on Monday, November 17th. The stock was sold at an average price of $609.35, for a total transaction of $365,610.00. Following the completion of the transaction, the director directly owned 7,347 shares of the company’s stock, valued at approximately $4,476,894.45. This represents a 7.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Susan J. Li sold 6,875 shares of the business’s stock in a transaction on Saturday, November 15th. The shares were sold at an average price of $609.46, for a total value of $4,190,037.50. Following the completion of the sale, the chief financial officer owned 88,370 shares in the company, valued at approximately $53,857,980.20. The trade was a 7.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 40,113 shares of company stock valued at $24,621,042. Corporate insiders own 13.61% of the company’s stock.

Hedge Funds Weigh In On Meta Platforms

Several large investors have recently modified their holdings of META. CoreFirst Bank & Trust purchased a new stake in shares of Meta Platforms during the 2nd quarter valued at approximately $101,000. Sagard Holdings Management Inc. bought a new stake in Meta Platforms during the 2nd quarter valued at $106,000. Basso Capital Management L.P. bought a new stake in Meta Platforms during the 3rd quarter valued at $147,000. Hara Capital LLC purchased a new stake in shares of Meta Platforms during the second quarter worth $158,000. Finally, Dymon Asia Capital Singapore PTE. LTD. bought a new position in shares of Meta Platforms in the second quarter worth $213,000. Hedge funds and other institutional investors own 79.91% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on META. Royal Bank Of Canada reiterated an “outperform” rating and set a $810.00 price target on shares of Meta Platforms in a research note on Thursday. Arete Research set a $718.00 target price on Meta Platforms in a research report on Thursday, December 4th. Needham & Company LLC reiterated a “hold” rating on shares of Meta Platforms in a report on Thursday. Mizuho increased their price target on Meta Platforms from $815.00 to $850.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $900.00 price objective (up from $870.00) on shares of Meta Platforms in a report on Thursday. Five analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $847.98.

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.