Meta Platforms (NASDAQ:META) Trading Down 1.8% – Here’s What Happened

Meta Platforms, Inc. (NASDAQ:META)’s stock price was down 1.8% during mid-day trading on Monday . The company traded as low as $598.08 and last traded at $598.86. Approximately 15,530,417 shares were traded during mid-day trading, a decline of 3% from the average daily volume of 16,038,838 shares. The stock had previously closed at $609.63.

More Meta Platforms News

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

• Positive Sentiment: Meta is expanding WhatsApp’s privacy tools with a new “incognito” mode for AI chats, which could help ease user concerns and support adoption of its AI features. Reuters article on WhatsApp incognito mode
• Positive Sentiment: The company also introduced more private messaging and sharing products, including an Instagram feature and additional AI privacy controls, which may help strengthen engagement and user trust over time. CNET article on Instagram Instants
• Neutral Sentiment: Meta is reportedly preparing to monetize WhatsApp more aggressively through a premium subscription model, which could eventually add high-margin recurring revenue, but the financial impact is still speculative. Seeking Alpha article on WhatsApp Plus
• Negative Sentiment: Santa Clara County filed a lawsuit accusing Meta of profiting from scam ads on Facebook and Instagram, adding to concerns that the company may face restitution, damages, and stricter oversight of its ad systems. Business Wire article on Santa Clara County complaint
• Negative Sentiment: Reuters reported that Meta is challenging New Mexico’s proposed $3.7 billion remedy in the teen mental health trial, underscoring the scale of potential liabilities from social media-related lawsuits. Reuters article on New Mexico trial
• Negative Sentiment: Separate reports said Meta lost a court fight in Italy over paying publishers for news snippets, reinforcing that international regulation could create additional costs and legal pressure. Reuters article on Italian publishers ruling

Wall Street Analyst Weigh In

A number of analysts have issued reports on META shares. Sanford C. Bernstein reduced their price objective on Meta Platforms from $900.00 to $850.00 and set an “outperform” rating on the stock in a research note on Thursday, April 30th. Evercore boosted their target price on Meta Platforms from $875.00 to $900.00 and gave the company an “outperform” rating in a research report on Thursday, January 29th. Wall Street Zen raised Meta Platforms from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Wells Fargo & Company boosted their target price on Meta Platforms from $765.00 to $770.00 and gave the company an “overweight” rating in a research report on Thursday, April 30th. Finally, DA Davidson boosted their target price on Meta Platforms from $825.00 to $850.00 and gave the company a “buy” rating in a research report on Thursday, January 29th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $840.31.

Meta Platforms Trading Up 2.3%

The company has a 50-day moving average price of $623.98 and a two-hundred day moving average price of $641.75. The company has a current ratio of 2.35, a quick ratio of 2.35 and a debt-to-equity ratio of 0.24. The stock has a market cap of $1.56 trillion, a P/E ratio of 22.41, a P/E/G ratio of 1.06 and a beta of 1.25.

Meta Platforms (NASDAQ:META) last posted its quarterly earnings data on Wednesday, April 29th. The social networking company reported $10.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.67 by $3.77. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.The company had revenue of $56.31 billion during the quarter, compared to analysts’ expectations of $55.56 billion. During the same quarter in the previous year, the business earned $6.43 EPS. Meta Platforms’s revenue was up 33.1% compared to the same quarter last year. On average, research analysts expect that Meta Platforms, Inc. will post 29.65 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Monday, March 16th were issued a dividend of $0.525 per share. The ex-dividend date was Monday, March 16th. This represents a $2.10 dividend on an annualized basis and a yield of 0.3%. Meta Platforms’s payout ratio is presently 7.63%.

Insider Buying and Selling at Meta Platforms

In other Meta Platforms news, COO Javier Olivan sold 926 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $604.57, for a total value of $559,831.82. Following the completion of the sale, the chief operating officer directly owned 6,853 shares in the company, valued at approximately $4,143,118.21. This represents a 11.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 580 shares of the company’s stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $667.00, for a total value of $386,860.00. Following the completion of the sale, the director owned 3,847 shares of the company’s stock, valued at $2,565,949. This represents a 13.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 169,231 shares of company stock valued at $108,239,954 over the last quarter. Company insiders own 13.61% of the company’s stock.

Institutional Investors Weigh In On Meta Platforms

Several hedge funds have recently made changes to their positions in the company. Brighton Jones LLC lifted its stake in shares of Meta Platforms by 1.7% during the 4th quarter. Brighton Jones LLC now owns 34,551 shares of the social networking company’s stock worth $20,230,000 after purchasing an additional 570 shares during the last quarter. Revolve Wealth Partners LLC lifted its stake in shares of Meta Platforms by 10.2% during the 4th quarter. Revolve Wealth Partners LLC now owns 9,456 shares of the social networking company’s stock worth $5,537,000 after purchasing an additional 875 shares during the last quarter. Headwater Capital Co Ltd lifted its stake in shares of Meta Platforms by 294.7% during the 1st quarter. Headwater Capital Co Ltd now owns 150,000 shares of the social networking company’s stock worth $86,454,000 after purchasing an additional 112,000 shares during the last quarter. Dymon Asia Capital Singapore PTE. LTD. purchased a new stake in shares of Meta Platforms during the 2nd quarter worth $213,000. Finally, Capital & Planning LLC purchased a new stake in shares of Meta Platforms during the 2nd quarter worth $322,000. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

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.