Meta Platforms (NASDAQ:META) Shares Down 3.3% Following Analyst Downgrade

Meta Platforms, Inc. (NASDAQ:META)’s share price dropped 3.3% on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $860.00 to $762.00. The Goldman Sachs Group currently has a buy rating on the stock. Meta Platforms traded as low as $734.29 and last traded at $737.54. 15,869,318 shares were traded during mid-day trading, a decline of 9% from the average session volume of 17,508,057 shares. The stock had previously closed at $762.50.

Several other research analysts also recently commented on the stock. Barclays dropped their target price on shares of Meta Platforms from $830.00 to $780.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Raymond James Financial upped their price target on shares of Meta Platforms from $650.00 to $860.00 and gave the company a “strong-buy” rating in a report on Thursday, September 24th. KeyCorp reaffirmed an “overweight” rating and issued a $900.00 price target on shares of Meta Platforms in a research report on Tuesday. UBS Group raised their price target on Meta Platforms from $715.00 to $884.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, China Renaissance dropped their price objective on Meta Platforms from $825.00 to $700.00 and set a “buy” rating on the stock in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, Meta Platforms currently has a consensus rating of “Moderate Buy” and an average price target of $801.53.

Insider Buying and Selling at Meta Platforms

In related news, insider Christopher Cox sold 40,000 shares of the company’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $712.76, for a total transaction of $28,510,400.00. Following the completion of the transaction, the insider directly owned 184,516 shares in the company, valued at $131,515,624.16. This represents a 17.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan Li sold 9,196 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $550.61, for a total transaction of $5,063,409.56. Following the completion of the sale, the chief financial officer directly owned 13,186 shares of the company’s stock, valued at approximately $7,260,343.46. This trade represents a 41.09% 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 148,222 shares of company stock valued at $101,033,627 in the last three months. 13.53% of the stock is owned by insiders.

More Meta Platforms News

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

• Positive Sentiment: Meta’s Muse Wonder and Muse Wonder Full models are strengthening its position in the AI race. Muse Wonder scored 83.2% on an accounting benchmark, tying for second among 57 models and exceeding competing OpenAI and Google models. The launch has helped revive confidence in Meta’s ability to compete with Anthropic, OpenAI and other leading developers. Muse Wonder AI benchmark article
• Positive Sentiment: Bank of America reiterated a Buy rating and an $810 price target, while Guggenheim raised its target to $850 and highlighted Meta’s narrowing gap with Anthropic. Analysts see potential for Muse AI agents and Meta’s massive user base to create new monetization opportunities. Bank of America Meta AI outlook
• Positive Sentiment: Meta expanded WhatsApp by allowing people without accounts to join free, end-to-end encrypted voice and video calls. Removing registration, time-limit and download barriers could improve WhatsApp’s appeal to businesses and users. WhatsApp guest calling article
• Neutral Sentiment: Meta’s third-quarter results are scheduled for October 21. Investors will focus on advertising growth, AI-related capital expenditures, operating expenses and guidance.
• Negative Sentiment: Goldman Sachs lowered its price target from $860 to $762, maintaining a Buy rating but citing concerns about rising operating expenses. The reduction contrasts with bullish targets from UBS, Guggenheim and Truist, underscoring disagreement over whether future AI revenue can offset near-term investment costs. Analyst views on Meta article
• Negative Sentiment: Commentary warns that Meta’s heavy AI spending could pressure free cash flow and lead to valuation multiple compression if the upcoming earnings report does not demonstrate clear returns on investment.

Institutional Investors Weigh In On Meta Platforms

A number of institutional investors have recently added to or reduced their stakes in the company. Fairtree Asset Management Pty Ltd increased its position in Meta Platforms by 18.6% during the 2nd quarter. Fairtree Asset Management Pty Ltd now owns 18,777 shares of the social networking company’s stock worth $10,577,000 after purchasing an additional 2,939 shares in the last quarter. Madison Wealth Partners Inc lifted its stake in Meta Platforms by 33.6% in the 2nd quarter. Madison Wealth Partners Inc now owns 3,031 shares of the social networking company’s stock valued at $1,707,000 after purchasing an additional 763 shares during the last quarter. William John Sempolinski acquired a new stake in Meta Platforms in the second quarter valued at approximately $3,107,000. Sone Capital Management LLC boosted its position in Meta Platforms by 38.2% in the second quarter. Sone Capital Management LLC now owns 16,059 shares of the social networking company’s stock valued at $9,046,000 after buying an additional 4,440 shares in the last quarter. Finally, Lakewood Capital Management LP boosted its position in Meta Platforms by 63.7% in the second quarter. Lakewood Capital Management LP now owns 115,985 shares of the social networking company’s stock valued at $65,333,000 after buying an additional 45,130 shares in the last quarter. 79.91% of the stock is owned by institutional investors and hedge funds.

Meta Platforms Trading Down 3.3%

The business’s 50 day simple moving average is $647.53 and its two-hundred day simple moving average is $622.44. The stock has a market cap of $1.88 trillion, a P/E ratio of 27.78, a PEG ratio of 1.29 and a beta of 1.19. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32.

Meta Platforms (NASDAQ:META) last announced 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). Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%. The company had revenue of $60.80 billion for the quarter, compared to analyst estimates of $60.22 billion. During the same quarter last year, the company posted $7.14 earnings per share. The firm’s quarterly revenue was up 28.0% on a year-over-year basis. As a group, analysts expect that Meta Platforms, Inc. will post 27.94 EPS for the current year.

Meta Platforms Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Monday, September 21st were given a dividend of $0.5250 per share. The ex-dividend date was Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a yield of 0.3%. Meta Platforms’s payout ratio is currently 7.91%.

Meta Platforms Company Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company operates a global family of apps that includes Facebook, Instagram, Messenger, WhatsApp and Threads, enabling users to connect, communicate, share content and discover communities.

Meta generates most of its business through digital advertising displayed across its platforms. Its products serve individuals, creators, businesses and organizations in markets around the world, while its advertising tools help businesses reach audiences based on factors such as interests, activity and demographics.

Through its Reality Labs division, Meta develops virtual and augmented reality hardware, software and services, including the Meta Quest line of headsets and related experiences.