Meta Platforms (NASDAQ:META) Stock Falls 1.6% – Here’s Why

Meta Platforms, Inc. (NASDAQ:META) shares were down 1.6% during trading on Tuesday. The stock traded as low as $681.05 and last traded at $694.25. 16,648,654 shares changed hands during trading, a decline of 5% from the average daily volume of 17,496,723 shares. The stock had previously closed at $705.44.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta’s Muse AI companion has surpassed 10 million U.S. downloads in its first 40 days, reaching 10.9 million total downloads. The early traction supports the view that Meta can use its large user base to develop new advertising, commerce and AI-agent revenue streams. Meta’s Muse reaches 10 million U.S. downloads
• Positive Sentiment: Rosenblatt Securities reaffirmed its buy rating and assigned an $886 price target, implying substantial upside from current levels. Analysts also expect higher advertising revenue, stronger engagement and growing AI monetization to support third-quarter results. Zacks Meta earnings preview
• Neutral Sentiment: Global affairs chief Joel Kaplan will leave Meta after 15 years. His departure follows the increased prominence of President Dina Powell McCormick and may change the company’s political and regulatory strategy, although the immediate financial impact is unclear. Reuters report on Joel Kaplan’s departure
• Neutral Sentiment: Meta told a Brazilian court that it treats the campaigns of President Luiz Inácio Lula da Silva and former President Jair Bolsonaro equally. The statement addresses political-content concerns but does not appear to alter the company’s near-term earnings outlook. Meta’s Brazil court statement
• Negative Sentiment: Investors remain concerned that Meta’s AI buildout will require elevated capital expenditures and cash usage. The stock has extended a multi-session decline ahead of earnings, with the market looking for evidence that AI investments are translating into revenue growth rather than weighing on profitability. Reuters report on Meta’s AI spending and earnings

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. JPMorgan Chase & Co. restated an “overweight” rating and issued a $920.00 price target on shares of Meta Platforms in a research note on Thursday, October 15th. Monness Crespi & Hardt increased their price objective on Meta Platforms from $730.00 to $830.00 and gave the company a “buy” rating in a research report on Monday, September 28th. HSBC dropped their price objective on Meta Platforms from $905.00 to $830.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Loop Capital lifted their price objective on Meta Platforms from $740.00 to $955.00 and gave the stock a “buy” rating in a report on Thursday, September 24th. Finally, Benchmark reissued a “hold” rating on shares of Meta Platforms in a research report on Thursday, August 27th. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $811.24.

Meta Platforms Stock Performance

The firm has a market capitalization of $1.77 trillion, a PE ratio of 26.14, a price-to-earnings-growth ratio of 1.20 and a beta of 1.19. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. The business’s 50 day simple moving average is $657.99 and its two-hundred day simple moving average is $627.42.

Meta Platforms (NASDAQ:META) last released its quarterly 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). The firm had revenue of $60.80 billion for the quarter, compared to the consensus estimate of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. Meta Platforms’s quarterly revenue was up 28.0% compared to the same quarter last year. During the same period in the previous year, the company earned $7.14 earnings per share. Research analysts expect that Meta Platforms, Inc. will post 28.81 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

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. This represents a $2.10 dividend on an annualized basis and a 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 other Meta Platforms news, CTO Andrew Bosworth sold 7,848 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total value of $4,379,184.00. Following the transaction, the chief technology officer directly owned 828 shares of the company’s stock, valued at approximately $462,024. This trade represents a 90.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher Cox sold 40,000 shares of the firm’s stock in a transaction dated Monday, September 21st. The stock was 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 in the company, valued at $131,515,624.16. The trade was a 17.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 148,331 shares of company stock valued at $101,233,569 in the last 90 days. Insiders own 13.53% of the company’s stock.

Hedge Funds Weigh In On Meta Platforms

Institutional investors have recently made changes to their positions in the business. Auto Owners Insurance Co lifted its position in shares of Meta Platforms by 76,587.7% during the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock valued at $69,502,379,000 after buying an additional 105,154,977 shares in the last quarter. Corient Private Wealth LP grew its stake in shares of Meta Platforms by 723.1% during the 2nd quarter. Corient Private Wealth LP now owns 8,801,764 shares of the social networking company’s stock valued at $4,957,946,000 after acquiring an additional 7,732,446 shares during the period. Jupiter Topco LLC bought a new position in shares of Meta Platforms during the 2nd quarter valued at approximately $2,948,486,000. State Street Corp increased its holdings in Meta Platforms by 4.0% in the 2nd quarter. State Street Corp now owns 92,033,963 shares of the social networking company’s stock worth $51,841,811,000 after acquiring an additional 3,510,123 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Meta Platforms by 14.6% in the 1st quarter. Bank of America Corp DE now owns 21,038,035 shares of the social networking company’s stock worth $12,036,491,000 after acquiring an additional 2,673,494 shares in the last quarter. Institutional investors own 79.91% of the company’s stock.

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’s principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.