Meta Platforms (NASDAQ:META) Trading 3.3% Higher – Should You Buy?

Meta Platforms, Inc. (NASDAQ:META)’s stock price shot up 3.3% during mid-day trading on Friday . The company traded as high as $558.33 and last traded at $556.71. 24,073,065 shares traded hands during mid-day trading, an increase of 42% from the average session volume of 16,918,844 shares. The stock had previously closed at $539.03.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Meta’s second-quarter revenue rose 28% year over year to $60.8 billion, exceeding Wall Street expectations. Advertising demand, higher ad prices, user engagement and AI-powered recommendations remain strong, supporting the core business. META’s Q2 Earnings Miss Estimates, Revenues Rise Y/Y on Ad Growth
• Positive Sentiment: Several analysts maintained bullish ratings despite reducing their price targets after earnings. Targets from firms including UBS, Baird, Citigroup, Bank of America, Rosenblatt and Cantor remain materially above recent trading levels, suggesting confidence in Meta’s advertising engine and eventual AI monetization. Meta Platforms Given New $750 Price Target at Robert W. Baird
• Positive Sentiment: Investors are also pointing to Meta’s large user base, improving Instagram personalization, Advantage+ advertising growth and expanding enterprise AI products as potential drivers of future revenue. Some analysts view the earnings-related decline as an opportunity because the stock’s valuation is lower than many mega-cap technology peers. Buy Meta’s 8% Earnings Drop Because This ‘Miss’ Was Not a Miss at All
• Neutral Sentiment: Meta’s Q3 revenue outlook of $61 billion to $64 billion was broadly viewed as softer than hoped, leaving investors waiting for clearer evidence that AI spending will generate measurable returns. What Meta Now Has to Prove Following Its Earnings Release
• Negative Sentiment: Meta reported quarterly EPS of $6.18, well below the roughly $7.19–$7.22 consensus estimate. Legal and severance charges contributed to the miss, but investors remain concerned that rising operating expenses and Reality Labs losses could pressure profitability. Meta Misses Profit Expectations, Sticks to Massive AI Spending
• Negative Sentiment: Free cash flow fell sharply as Meta committed approximately $130 billion to $145 billion in annual capital expenditures; future AI-related data-center lease obligations reportedly reached $279 billion. This has intensified comparisons with Microsoft, whose AI investments are currently producing stronger cash generation. Dwindling Cash and Soaring Memory Costs: Tech’s AI Buildout Has Ballooning Price Tag
• Negative Sentiment: Regulatory and legal overhangs persist, including a wrongful-death lawsuit alleging harm to minors and an Indian police case involving Meta’s India head over Facebook posts concerning Prime Minister Narendra Modi. Social Media Victims Law Center Files Wrongful Death Lawsuit

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on META. Barclays dropped their price objective on Meta Platforms from $830.00 to $780.00 and set an “overweight” rating on the stock in a research report on Thursday. Monness Crespi & Hardt decreased their price target on shares of Meta Platforms from $890.00 to $730.00 and set a “buy” rating for the company in a research report on Thursday. Roth Capital restated a “buy” rating on shares of Meta Platforms in a report on Thursday, April 30th. Erste Group Bank raised shares of Meta Platforms from a “hold” rating to a “buy” rating in a research report on Tuesday, July 7th. Finally, Mizuho set a $750.00 price objective on shares of Meta Platforms in a research note on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $789.95.

Meta Platforms Price Performance

The company has a quick ratio of 2.35, a current ratio of 2.35 and a debt-to-equity ratio of 0.24. The firm has a market cap of $1.41 trillion, a PE ratio of 20.97, a price-to-earnings-growth ratio of 0.98 and a beta of 1.25. The stock has a 50 day moving average price of $602.23 and a two-hundred day moving average price of $623.44.

Meta Platforms (NASDAQ:META) last released its earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing the consensus estimate of $7.19 by ($1.01). Meta Platforms had a return on equity of 34.81% and a net margin of 29.83%.The company had revenue of $60.80 billion for the quarter, compared to analysts’ expectations of $60.22 billion. During the same period in the prior year, the firm posted $7.14 EPS. The firm’s revenue for the quarter was up 28.0% on a year-over-year basis. As a group, equities analysts expect that Meta Platforms, Inc. will post 29.4 earnings per share for the current year.

Meta Platforms Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were given a $0.525 dividend. This represents a $2.10 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Monday, June 15th. Meta Platforms’s dividend payout ratio is presently 7.63%.

Insider Activity

In related news, COO Javier Olivan sold 837 shares of the company’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $607.85, for a total value of $508,770.45. Following the sale, the chief operating officer owned 6,290 shares in the company, valued at $3,823,376.50. This represents a 11.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 stock in a transaction that occurred on Wednesday, July 1st. The stock was 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 trade represents a 12.68% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 39,325 shares of company stock worth $23,979,087. Company insiders own 13.53% of the company’s stock.

Institutional Trading of Meta Platforms

Large investors have recently made changes to their positions in the business. Vista Capital Partners Inc. lifted its stake in shares of Meta Platforms by 1.3% in the second quarter. Vista Capital Partners Inc. now owns 1,075 shares of the social networking company’s stock worth $794,000 after buying an additional 14 shares in the last quarter. First National Bank Sioux Falls grew its position in shares of Meta Platforms by 0.7% in the fourth quarter. First National Bank Sioux Falls now owns 2,001 shares of the social networking company’s stock valued at $1,321,000 after purchasing an additional 14 shares in the last quarter. Levin Capital Strategies L.P. grew its position in shares of Meta Platforms by 1.4% in the fourth quarter. Levin Capital Strategies L.P. now owns 984 shares of the social networking company’s stock valued at $649,000 after purchasing an additional 14 shares in the last quarter. Arcataur Capital Management LLC increased its holdings in shares of Meta Platforms by 0.9% in the fourth quarter. Arcataur Capital Management LLC now owns 1,736 shares of the social networking company’s stock valued at $1,146,000 after purchasing an additional 15 shares during the last quarter. Finally, Acorn Creek Capital LLC increased its holdings in shares of Meta Platforms by 0.7% in the fourth quarter. Acorn Creek Capital LLC now owns 2,118 shares of the social networking company’s stock valued at $1,398,000 after purchasing an additional 15 shares during the last quarter. 79.91% of the stock is owned by hedge funds and other 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.