Meta Platforms (NASDAQ:META) Releases Quarterly Earnings Results, Beats Estimates By $0.86 EPS

Meta Platforms (NASDAQ:META) posted its quarterly earnings data on Wednesday. The social networking company reported $7.40 EPS for the quarter, topping analysts’ consensus estimates of $6.54 by $0.86, FiscalAI reports. Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%. The company had revenue of $64.60 billion for the quarter, compared to the consensus estimate of $63.34 billion.

Meta Platforms Stock Up 0.5%

Meta Platforms stock traded up $3.27 during mid-day trading on Wednesday, hitting $697.52. The company’s stock had a trading volume of 27,682,886 shares, compared to its average volume of 17,545,104. The firm’s 50 day moving average is $659.90 and its 200 day moving average is $628.23. The company has a market cap of $1.78 trillion, a PE ratio of 26.27, a price-to-earnings-growth ratio of 1.24 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 has a 52-week low of $520.26 and a 52-week high of $779.82.

Meta Platforms Dividend Announcement

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

Insiders Place Their Bets

In other Meta Platforms news, COO Javier Olivan sold 946 shares of Meta Platforms stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $728.10, for a total transaction of $688,782.60. Following the transaction, the chief operating officer owned 6,932 shares of the company’s stock, valued at $5,047,189.20. The trade was a 12.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Zuckerberg sold 27,474 shares of the company’s stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $777.44, for a total value of $21,359,386.56. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 148,331 shares of company stock worth $101,233,569. 13.53% of the stock is currently owned by company insiders.

More Meta Platforms News

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

• Positive Sentiment: Revenue and earnings beat expectations. Meta reported $64.6 billion in quarterly revenue versus the $63.34 billion consensus estimate, while EPS of $7.40 exceeded expectations of $6.54. The results reinforced confidence in the company’s advertising engine. Meta Platforms earnings results
• Positive Sentiment: Muse is gaining rapid traction. Meta said its AI assistant Muse has surpassed 10 million users, supporting the investment case that the company can use its massive social-app audience to build future advertising, commerce and subscription opportunities. Muse user growth
• Neutral Sentiment: Meta is increasing AI infrastructure spending. Third-quarter capital expenditures reached $34.91 billion, and management raised the lower end of its annual spending outlook. The investment could strengthen Meta’s competitive position, but it is also pressuring cash flow and raising questions about the timing of returns. Meta AI capital spending
• Neutral Sentiment: A new Class C stock will preserve Mark Zuckerberg’s control. The nonvoting shares are intended to help fund AI expansion without reducing Zuckerberg’s voting power. The structure may provide financing flexibility, but investors could remain concerned about dilution and governance. Meta new share class
• Negative Sentiment: Major legal exposures cloud the report. Meta faces a $25 billion New Mexico judgment tied to privacy practices and recorded a $9.9 billion charge related to a broader teen mental-health lawsuit settlement. The company plans to appeal the New Mexico ruling, but the liabilities highlight ongoing regulatory and litigation risks. Meta New Mexico privacy judgment

Analyst Ratings Changes

Several research analysts recently weighed in on META shares. Citigroup raised their target price on Meta Platforms from $800.00 to $895.00 and gave the company a “buy” rating in a research note on Thursday, October 15th. Citizens Jmp boosted their price target on shares of Meta Platforms from $770.00 to $885.00 and gave the stock a “market outperform” rating in a research report on Thursday, September 24th. Benchmark reissued a “hold” rating on shares of Meta Platforms in a report on Thursday, August 27th. Canaccord Genuity Group upped their price target on shares of Meta Platforms from $930.00 to $950.00 and gave the company a “buy” rating in a report on Friday, September 25th. Finally, UBS Group raised their price objective on shares of Meta Platforms from $715.00 to $884.00 and gave the company a “buy” rating in a research report on Wednesday, October 14th. Three investment 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 stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $811.24.

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.