Meta Platforms (NASDAQ:META) Stock Falls 3.3% – Should You Sell?

by · The Cerbat Gem

Meta Platforms, Inc. (NASDAQ:META – Get Free Report) shares dropped 3.3% during trading on Friday. The stock traded as low as $746.54 and last traded at $751.66. Approximately 25,483,508 shares were traded during mid-day trading, an increase of 46% from the average session volume of 17,474,625 shares. The stock had previously closed at $777.59.

Meta Platforms News Summary

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

  • Positive Sentiment: Muse is strengthening Meta’s AI growth story. Early adoption has been strong, with reports that Muse’s U.S. daily users initially outpaced ChatGPT’s comparable launch period. Analysts see potential monetization through subscriptions, advertising, commerce and business services. Meta is putting its muscle behind Muse as the AI app takes off
  • Positive Sentiment: Analysts continue raising price targets. Deutsche Bank raised its target to $820, TD Cowen to $865, and Canaccord Genuity to $950, all maintaining bullish ratings. The increases reflect expectations that Muse, AI glasses and other hardware could create major revenue streams beyond advertising. Meta’s powerful breakout sets up a unique trading strategy
  • Positive Sentiment: Hardware distribution is expanding. Meta is bringing Muse to Ray-Ban AI glasses, introducing camera-free audio glasses and preparing the Muse Charm handheld device. These products could increase daily engagement and provide new channels for AI services. Meta is quietly rewriting its hardware strategy
  • Neutral Sentiment: Profit-taking is pressuring the stock after its steep advance. Meta has gained roughly one-third during September, increasing the likelihood of a technical pullback even though the longer-term trend remains strong. Elevated Treasury yields also remain a valuation headwind for high-growth technology shares.
  • Negative Sentiment: A New Mexico jury found Facebook liable for misleading consumers in the Cambridge Analytica scandal. The ruling revives privacy-related legal and reputational risks tied to the unauthorized collection of millions of users’ data. Meta misled consumers in Cambridge Analytica case
  • Negative Sentiment: Muse faces security and distribution challenges. Meta added a clearer safety warning after a vulnerability could expose sensitive user information, while Amazon has blocked Muse’s shopping access. These issues could slow adoption or increase regulatory scrutiny. Meta bolsters Muse safety warning after vulnerability
  • Negative Sentiment: Investors remain concerned about spending and valuation. Meta’s large AI infrastructure and Reality Labs investments could pressure free cash flow, while Reality Labs has accumulated more than $85 billion in losses. Insider share sales under pre-arranged plans add a modest cautionary signal.

Analyst Ratings Changes

META has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft increased their target price on Meta Platforms from $750.00 to $820.00 and gave the stock a “buy” rating in a research report on Friday. Barclays cut their target price on Meta Platforms from $830.00 to $780.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. DZ Bank reiterated a “buy” rating on shares of Meta Platforms in a research report on Thursday, July 30th. Scotiabank reaffirmed a “sector perform” rating and set a $600.00 price objective (down from $700.00) on shares of Meta Platforms in a research note on Thursday, July 30th. Finally, Piper Sandler upped their target price on shares of Meta Platforms from $785.00 to $875.00 and gave the stock an “overweight” rating in a report on Friday. Three analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $785.90.

View Our Latest Stock Analysis on Meta Platforms

Meta Platforms Trading Down 3.3%

The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $1.91 trillion, a P/E ratio of 28.31, a price-to-earnings-growth ratio of 1.28 and a beta of 1.25. The firm’s 50-day simple moving average is $613.05 and its 200-day simple moving average is $612.10.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its 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). The company had revenue of $60.80 billion during the quarter, compared to analysts’ expectations of $60.22 billion. Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The firm’s revenue was up 28.0% on a year-over-year basis. During the same quarter last year, the firm posted $7.14 earnings per share. Analysts anticipate that Meta Platforms, Inc. will post 27.93 EPS for the current year.

Meta Platforms Dividend Announcement

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

Insider Buying and Selling

In other Meta Platforms news, CAO Aaron Anderson sold 3,240 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $618.06, for a total transaction of $2,002,514.40. Following the transaction, the chief accounting officer directly owned 6,271 shares in the company, valued at $3,875,854.26. This trade represents a 34.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 business’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $712.76, for a total transaction of $28,510,400.00. Following the completion of the sale, the insider owned 184,516 shares of the company’s stock, valued at approximately $131,515,624.16. The trade was a 17.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 123,333 shares of company stock worth $80,795,845 in the last quarter. 13.53% of the stock is owned by insiders.

Hedge Funds Weigh In On Meta Platforms

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Auto Owners Insurance Co grew its position in shares of Meta Platforms by 76,587.7% in the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock worth $69,502,379,000 after buying an additional 105,154,977 shares during the last quarter. State Street Corp boosted its stake in shares of Meta Platforms by 4.0% during the 2nd quarter. State Street Corp now owns 92,033,963 shares of the social networking company’s stock valued at $51,841,811,000 after purchasing an additional 3,510,123 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Meta Platforms by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company’s stock valued at $34,734,628,000 after buying an additional 878,396 shares during the period. Norges Bank bought a new position in Meta Platforms in the fourth quarter worth about $22,152,075,000. Finally, Bank of America Corp DE raised its stake in Meta Platforms by 14.6% in the first 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 buying an additional 2,673,494 shares in the last quarter. 79.91% of the stock is currently owned by institutional investors.

Meta Platforms Company Profile

(Get Free Report)

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company’s principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.

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