Meta Platforms (NASDAQ:META) Shares Up 3% – Still a Buy?

Meta Platforms, Inc. (NASDAQ:META) rose 3% during mid-day trading on Thursday . The stock traded as high as $619.46 and last traded at $610.68. Approximately 18,867,519 shares were traded during trading, an increase of 12% from the average session volume of 16,815,338 shares. The stock had previously closed at $592.85.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Meta unveiled Muse Spark 1.3, which its AI chief said represents the company’s biggest improvement in model performance and is competitive with offerings from Anthropic and OpenAI. The announcement renewed expectations that Meta can strengthen its AI products, user engagement and advertising capabilities. Meta Rises 4% as Muse Spark 1.3 Claims Parity With Anthropic and OpenAI
• Positive Sentiment: Analysts and commentators see AI as a potential long-term growth catalyst for Meta, with the company’s large-scale infrastructure, advertising platform and consumer reach potentially supporting substantial future cash-flow growth. Some investors believe the stock’s depressed valuation leaves room for recovery if AI monetization improves. Meta Stock Has a New AI Catalyst
• Neutral Sentiment: Meta is reportedly paying users to share information about how they use its newest AI model. The program could improve future products, but the data-privacy implications and user reception may affect the company’s reputation. Meta is paying to peek at how you use their latest AI model
• Neutral Sentiment: Wedbush reaffirmed a Neutral rating, indicating that analysts remain cautious about balancing Meta’s AI opportunity against valuation, spending and execution risks. Wedbush Reaffirms Neutral Rating for Meta Platforms
• Negative Sentiment: Meta’s settlement of social-media-related litigation could cost up to $17 billion over 10 years and requires changes affecting teen users on Facebook and Instagram. Although resolving the lawsuit removes a major overhang and may clear the way for new AI launches, the financial cost and potential engagement limitations remain risks. Meta Is Making These Major Changes for Teen Users After $17 Billion Settlement
• Negative Sentiment: Investors continue to scrutinize sharply higher AI infrastructure spending, reportedly approaching $145 billion, which is pressuring free cash flow and operating margins. Meta must demonstrate that Muse Spark and related AI investments generate sufficient advertising or product revenue. Meta’s Next Trillion Dollars Could Come From AI

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. DA Davidson decreased their target price on Meta Platforms from $850.00 to $700.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $810.00 price target on shares of Meta Platforms in a report on Monday, June 1st. Needham & Company LLC reaffirmed a “hold” rating on shares of Meta Platforms in a research report on Thursday, August 27th. BNP Paribas Exane assumed coverage on shares of Meta Platforms in a report on Tuesday, June 2nd. They issued an “outperform” rating on the stock. Finally, Citizens Jmp dropped their price objective on shares of Meta Platforms from $800.00 to $770.00 and set a “market outperform” 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 assigned a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, Meta Platforms currently has an average rating of “Moderate Buy” and an average target price of $785.22.

Meta Platforms Stock Up 3.0%

The firm’s 50-day moving average price is $593.48 and its 200 day moving average price is $609.41. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. The company has a market capitalization of $1.56 trillion, a price-to-earnings ratio of 23.00, a PEG ratio of 1.00 and a beta of 1.25.

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

Insider Transactions at Meta Platforms

In related news, CTO Andrew Bosworth sold 7,848 shares of the 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 $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 represents a 90.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis J. Mahoney sold 1,559 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total transaction of $869,922.00. Following the transaction, the insider owned 1,957 shares of the company’s stock, valued at $1,092,006. This trade represents 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. In the last 90 days, insiders have sold 32,987 shares of company stock worth $19,202,995. 13.53% of the stock is owned by insiders.

Institutional Investors Weigh In On Meta Platforms

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Ashton Thomas Securities LLC grew its stake in shares of Meta Platforms by 17.4% in the 1st quarter. Ashton Thomas Securities LLC now owns 18,000 shares of the social networking company’s stock valued at $10,299,000 after buying an additional 2,670 shares during the period. Keybank National Association OH raised its stake in Meta Platforms by 15.7% during the 4th quarter. Keybank National Association OH now owns 133,798 shares of the social networking company’s stock worth $88,319,000 after buying an additional 18,169 shares during the period. WMS Group LLC acquired a new position in Meta Platforms during the 4th quarter worth approximately $876,000. Vanguard Group Inc. boosted its holdings in Meta Platforms by 3.8% in the fourth quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock worth $132,015,115,000 after acquiring an additional 7,269,279 shares in the last quarter. Finally, Czech National Bank boosted its holdings in Meta Platforms by 4.9% in the second quarter. Czech National Bank now owns 625,079 shares of the social networking company’s stock worth $352,101,000 after acquiring an additional 29,411 shares in the last quarter. Institutional investors 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.