Meta Platforms (NASDAQ:META) Stock Price Down 2.4% – What’s Next?

Meta Platforms, Inc. (NASDAQ:META)’s share price was down 2.4% during trading on Wednesday. The stock traded as low as $720.15 and last traded at $721.31. Approximately 12,705,485 shares changed hands during trading, a decline of 27% from the average session volume of 17,470,686 shares. The stock had previously closed at $738.88.

Key Meta Platforms News

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

• Positive Sentiment: Muse expands to iPad: Meta launched a dedicated iPad app for Muse only a month after its mobile debut. The rapid rollout and strong app-download momentum support the view that Meta is making meaningful progress in consumer AI and could eventually monetize a large user base. Meta’s Muse launches on iPad just a month after its mobile debut
• Positive Sentiment: AI-agent business standards: Meta and Sierra are working with companies including Shopify, Stripe and Walmart on the Personal Agent Protocol, intended to let consumer AI agents interact with businesses. If widely adopted, the standard could strengthen Meta’s position in AI-driven commerce and customer interactions. Meta and Sierra launch protocol for AI agents to interact with businesses
• Positive Sentiment: Higher analyst target: Wells Fargo raised its Meta price target to $1,000 from $796 while retaining an Overweight rating, citing enthusiasm for the Muse product cycle. The broader analyst consensus remains “Moderate Buy,” reinforcing bullish sentiment. Why this analyst expects Meta stock to hit $1,000
• Neutral Sentiment: Potential cloud opportunity: Investor Dan Niles suggested Meta could build a public cloud business to capitalize on AI-computing demand. This represents a potentially significant new revenue stream, but it is only a proposal and would require substantial investment and execution. Dan Niles Sees a New Way for Meta to Cash In on AI Spending
• Negative Sentiment: Legal and macroeconomic risks: New Mexico is seeking a potentially enormous penalty in litigation against Meta, with a ruling expected this month. Separately, higher interest rates could pressure technology valuations and raise the cost of Meta’s ongoing AI infrastructure spending. New Mexico Wants Meta to Pay Up to $40 Billion
• Negative Sentiment: High expectations after a rally: Meta shares had recently surged nearly 22% in a month, leaving the stock vulnerable to profit-taking if Muse engagement does not translate into recurring revenue. The company’s latest reported quarter also included an EPS miss despite strong revenue growth, adding to execution concerns.

Analysts Set New Price Targets

A number of brokerages recently commented on META. Erste Group Bank raised Meta Platforms from a “hold” rating to a “buy” rating in a research note on Tuesday, July 7th. China Renaissance cut their target price 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. CICC Research reduced their target price on Meta Platforms from $773.00 to $700.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Needham & Company LLC restated a “hold” rating on shares of Meta Platforms in a research report on Thursday, August 27th. Finally, Arete Research upped their price target on Meta Platforms from $735.00 to $806.00 and gave the company a “buy” rating in a research note on Wednesday, September 16th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-four have issued a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, Meta Platforms presently has a consensus rating of “Moderate Buy” and an average target price of $791.86.

Meta Platforms Trading Down 2.4%

The business has a 50 day simple moving average of $631.39 and a 200-day simple moving average of $617.69. The stock has a market capitalization of $1.84 trillion, a price-to-earnings ratio of 27.17, a PEG ratio of 1.29 and a beta of 1.19. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

Meta Platforms (NASDAQ:META) last released its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing analysts’ consensus estimates of $7.19 by ($1.01). Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The business had revenue of $60.80 billion for the quarter, compared to analyst estimates of $60.22 billion. During the same period in the prior year, the business earned $7.14 EPS. The company’s revenue for the quarter was up 28.0% compared to the same quarter last year. As a group, equities analysts expect that Meta Platforms, Inc. will post 27.94 earnings per share for the current year.

Meta Platforms Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were issued a $0.5250 dividend. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Monday, September 21st. Meta Platforms’s dividend payout ratio is 7.91%.

Insider Buying and Selling

In related news, insider Christopher K. 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 value of $28,510,400.00. Following the completion of the transaction, the insider directly owned 184,516 shares of the company’s stock, valued at approximately $131,515,624.16. This represents a 17.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Andrew Bosworth sold 7,848 shares of Meta Platforms stock in a transaction dated 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 sale, the chief technology officer directly owned 828 shares in the company, valued at $462,024. This represents a 90.46% 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. Over the last three months, insiders have sold 146,647 shares of company stock valued at $99,886,901. 13.53% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Fairtree Asset Management Pty Ltd lifted its stake in Meta Platforms by 18.6% in 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 increased its holdings in shares of Meta Platforms by 33.6% in the second quarter. Madison Wealth Partners Inc now owns 3,031 shares of the social networking company’s stock worth $1,707,000 after purchasing an additional 763 shares during the last quarter. William John Sempolinski bought a new stake in shares of Meta Platforms in the second quarter worth about $3,107,000. Sone Capital Management LLC lifted its position in shares of 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 worth $9,046,000 after buying an additional 4,440 shares in the last quarter. Finally, Lakewood Capital Management LP boosted its stake in Meta Platforms by 63.7% during 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 during the last quarter. 79.91% of the stock is currently owned by institutional investors.

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.