Meta Platforms (NASDAQ:META) Trading Down 4.9% – Time to Sell?

Shares of Meta Platforms, Inc. (NASDAQ:META) were down 4.9% during mid-day trading on Thursday . The company traded as low as $580.42 and last traded at $582.90. Approximately 20,873,516 shares changed hands during trading, an increase of 26% from the average session volume of 16,604,672 shares. The stock had previously closed at $612.91.

Key Headlines Impacting Meta Platforms

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

• Positive Sentiment: Meta’s reported plan to launch a cloud/infrastructure business could turn surplus AI compute into a recurring revenue source and improve the payback on its huge AI investments.
• Positive Sentiment: Several commentators and analysts said the move could strengthen Meta’s long-term AI monetization story, with some suggesting the opportunity could be material if execution is strong.
• Positive Sentiment: Meta also quietly launched Pocket, a new AI-powered gaming app, showing it is still pushing new consumer products that could deepen engagement and create additional monetization options. Meta quietly launches vibe-coded gaming app Pocket
• Neutral Sentiment: Meta named Alex Schultz its first chief data officer and promoted Denise Moreno to chief marketing officer, a management reshuffle aimed at improving AI-era decision-making and marketing execution. Meta names Alex Schultz first chief data officer
• Neutral Sentiment: Meta’s WhatsApp username rollout is being framed as a privacy and anti-impersonation upgrade, but India has asked the company to pause the launch over fraud concerns, which could slow adoption in a key market. India asks Meta to hold WhatsApp username rollout over fraud fears
• Negative Sentiment: Meta also lost its bid to dismiss a lawsuit alleging Facebook and Instagram are designed to addict children, adding legal overhang and reinforcing regulatory risk around the company. Meta Platforms Loses Summary Judgment Bid in US States’ Suit Over Claims That Facebook, Instagram Addict Children
• Negative Sentiment: Reuters reporting that the Trump administration pressed Meta to submit AI models for voluntary review highlights potential compliance scrutiny as Meta expands its AI ambitions. Meta pressed Trump administration to submit AI models for voluntary review

Analysts Set New Price Targets

A number of research firms have weighed in on META. Wolfe Research reduced their target price on Meta Platforms from $850.00 to $800.00 and set an “outperform” rating on the stock in a research note on Friday, April 10th. Royal Bank Of Canada reissued an “outperform” rating and set a $810.00 target price on shares of Meta Platforms in a research note on Monday, June 1st. The Goldman Sachs Group cut shares of Meta Platforms from a “buy” rating to a “sell” rating in a report on Tuesday, June 2nd. Citizens Jmp reaffirmed a “market outperform” rating and issued a $900.00 price target on shares of Meta Platforms in a research note on Tuesday, April 21st. Finally, Erste Group Bank lowered shares of Meta Platforms from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Meta Platforms currently has a consensus rating of “Moderate Buy” and an average target price of $840.64.

Meta Platforms Price Performance

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 firm’s 50-day moving average price is $606.34 and its two-hundred day moving average price is $628.95. The stock has a market cap of $1.47 trillion, a PE ratio of 21.19, a PEG ratio of 1.00 and a beta of 1.25.

Meta Platforms (NASDAQ:META) last issued its quarterly earnings data on Wednesday, April 29th. The social networking company reported $10.44 EPS for the quarter, topping analysts’ consensus estimates of $6.67 by $3.77. The company had revenue of $56.31 billion during the quarter, compared to the consensus estimate of $55.56 billion. Meta Platforms had a net margin of 32.84% and a return on equity of 36.93%. Meta Platforms’s revenue for the quarter was up 33.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $6.43 earnings per share. On average, equities analysts expect that Meta Platforms, Inc. will post 29.35 earnings per share for the current fiscal year.

Meta Platforms Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were paid a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Monday, June 15th. Meta Platforms’s dividend payout ratio is 7.63%.

Insider Activity at Meta Platforms

In other Meta Platforms news, COO Javier Olivan sold 140 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $600.00, for a total value of $84,000.00. Following the completion of the transaction, the chief operating officer directly owned 12,846 shares in the company, valued at approximately $7,707,600. The trade was a 1.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis J. Mahoney sold 2,079 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $609.92, for a total transaction of $1,268,023.68. Following the sale, the insider directly owned 1,118 shares of the company’s stock, valued at approximately $681,890.56. The trade was a 65.03% 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. Insiders have sold a total of 39,013 shares of company stock valued at $24,115,999 over the last quarter. 13.53% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Meta Platforms

Several institutional investors and hedge funds have recently bought and sold shares of the company. First National Bank Sioux Falls grew its stake in shares of Meta Platforms by 0.7% during the fourth quarter. First National Bank Sioux Falls now owns 2,001 shares of the social networking company’s stock worth $1,321,000 after acquiring an additional 14 shares during the last quarter. Levin Capital Strategies L.P. raised its position in shares of Meta Platforms by 1.4% in the 4th 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 during the last quarter. Vista Capital Partners Inc. raised its position in shares of Meta Platforms by 1.3% in the 2nd quarter. Vista Capital Partners Inc. now owns 1,075 shares of the social networking company’s stock valued at $794,000 after purchasing an additional 14 shares during the last quarter. Arcataur Capital Management LLC boosted its stake in Meta Platforms by 0.9% in the 4th quarter. Arcataur Capital Management LLC now owns 1,736 shares of the social networking company’s stock worth $1,146,000 after purchasing an additional 15 shares in the last quarter. Finally, Acorn Creek Capital LLC boosted its stake in Meta Platforms by 0.7% in the 4th quarter. Acorn Creek Capital LLC now owns 2,118 shares of the social networking company’s stock worth $1,398,000 after purchasing an additional 15 shares in 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.