Meta Platforms (NASDAQ:META) Stock Price Down 1.7% Following Analyst Downgrade

Meta Platforms, Inc. (NASDAQ:META)’s stock price was down 1.7% on Tuesday after Wells Fargo & Company lowered their price target on the stock from $802.00 to $795.00. Wells Fargo & Company currently has an overweight rating on the stock. Meta Platforms traded as low as $624.10 and last traded at $631.09. Approximately 17,888,955 shares traded hands during mid-day trading, an increase of 35% from the average daily volume of 13,258,383 shares. The stock had previously closed at $641.97.

A number of other research analysts also recently weighed in on the stock. Roth Capital restated a “buy” rating on shares of Meta Platforms in a research report on Thursday, October 30th. Raymond James Financial restated a “strong-buy” rating and issued a $825.00 price target (down from $900.00) on shares of Meta Platforms in a research note on Thursday, October 30th. UBS Group lifted their price objective on Meta Platforms from $900.00 to $915.00 and gave the stock a “buy” rating in a report on Thursday, October 30th. Barclays lowered their target price on Meta Platforms from $810.00 to $770.00 and set an “overweight” rating on the stock in a report on Thursday, October 30th. Finally, Truist Financial dropped their target price on Meta Platforms from $900.00 to $875.00 and set a “buy” rating on the stock in a research report on Thursday, October 30th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, Meta Platforms currently has an average rating of “Moderate Buy” and a consensus price target of $822.96.

Insiders Place Their Bets

In related news, Director Robert M. Kimmitt sold 580 shares of the stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $646.00, for a total value of $374,680.00. Following the completion of the sale, the director directly owned 6,167 shares of the company’s stock, valued at approximately $3,983,882. This represents a 8.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Jennifer Newstead sold 519 shares of Meta Platforms stock in a transaction that occurred on Tuesday, December 30th. The shares were sold at an average price of $658.69, for a total transaction of $341,860.11. Following the transaction, the insider directly owned 28,658 shares in the company, valued at $18,876,738.02. This represents a 1.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 40,571 shares of company stock worth $25,137,541 over the last quarter. 13.61% of the stock is currently owned by corporate insiders.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Big‑tech energy deals reduce a major execution risk for Meta’s AI/data‑center buildout — Meta signed prepayment/partner arrangements (e.g., Oklo) that de‑risk long‑term baseload power for its compute expansion, which supports the Meta Compute plan. Oklo’s Meta Deal De-Risks the Story—Rebound Setup Emerging
• Positive Sentiment: Additional nuclear partnerships (Terrapower reports) signal Meta is securing long‑term, reliable power — important as Meta scales “tens/hundreds of gigawatts” for AI. Bill Gates’ Terrapower to supply Meta Platforms with nuclear reactors
• Positive Sentiment: Demand signals for AI wearables: Meta and EssilorLuxottica are discussing ramping Ray‑Ban Meta smart glasses output, supporting the company’s pivot to AI devices and potential revenue diversification beyond advertising. Meta mulls doubling output of Ray-Ban glasses by year end
• Positive Sentiment: Analyst bullishness: a couple of firms reaffirmed/raised targets (Rosenblatt, TD Cowen), indicating upside expectation if Meta’s AI investments pay off.
• Neutral Sentiment: Meta Compute initiative outlines a massive data‑center/data‑power capex path to own AI infrastructure — strategically positive long term but increases near‑term capital intensity and execution risk. Meta Compute: Inside Zuckerberg’s Massive Data Center Bet
• Neutral Sentiment: Quarterly release scheduled after the close on Jan. 28 — upcoming results and guidance will be a key catalyst for the next leg of the stock’s move. Meta to Announce Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Reality Labs layoffs (~1,500 jobs, ~10% of division) signal contraction of metaverse ambitions and larger restructuring; while this cuts costs, it raises near‑term execution and product risks for VR/metaverse roadmap. Meta Lays Off 1,500 People in Metaverse Division
• Negative Sentiment: Analyst downgrades and pessimistic forecasts (some outlets reporting cuts in sentiment and price targets) are pressuring the stock amid concerns about very large 2026 capex guidance and falling free‑cash‑flow. Wells Fargo & Company Issues Pessimistic Forecast for Meta Platforms
• Negative Sentiment: Insider selling: COO Javier Olivan disclosed a sale (~517 shares) which, paired with other negative headlines, can amplify short‑term selling pressure. SEC Filing: Javier Olivan sale
• Negative Sentiment: Regulatory/legal risks persist (e.g., Brazil/WhatsApp orders and appeals) that could add litigation or compliance costs in key markets. Meta, WhatsApp approach Supreme Court against NCLAT decision

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Bay Colony Advisory Group Inc d b a Bay Colony Advisors raised its stake in Meta Platforms by 0.4% during the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 3,506 shares of the social networking company’s stock valued at $2,587,000 after purchasing an additional 13 shares during the period. Pachira Investments Inc. grew its holdings in Meta Platforms by 3.0% during the 2nd quarter. Pachira Investments Inc. now owns 488 shares of the social networking company’s stock valued at $360,000 after buying an additional 14 shares in the last quarter. Hemington Wealth Management raised its position in shares of Meta Platforms by 0.6% during the second quarter. Hemington Wealth Management now owns 2,223 shares of the social networking company’s stock valued at $1,641,000 after buying an additional 14 shares during the last quarter. Trust Co of the South lifted its holdings in shares of Meta Platforms by 0.8% in the third quarter. Trust Co of the South now owns 1,850 shares of the social networking company’s stock worth $1,359,000 after buying an additional 14 shares in the last quarter. Finally, Sentinel Pension Advisors LLC lifted its holdings in shares of Meta Platforms by 1.6% in the third quarter. Sentinel Pension Advisors LLC now owns 915 shares of the social networking company’s stock worth $672,000 after buying an additional 14 shares in the last quarter. Hedge funds and other institutional investors own 79.91% of the company’s stock.

Meta Platforms Trading Down 2.5%

The stock has a market cap of $1.55 trillion, a P/E ratio of 27.19, a price-to-earnings-growth ratio of 1.25 and a beta of 1.29. The stock’s 50-day moving average is $641.01 and its two-hundred day moving average is $701.60. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.98 and a quick ratio of 1.98.

Meta Platforms (NASDAQ:META) last announced its quarterly earnings results on Wednesday, October 29th. The social networking company reported $7.25 EPS for the quarter, topping the consensus estimate of $6.74 by $0.51. The business had revenue of $51.24 billion for the quarter, compared to analysts’ expectations of $49.34 billion. Meta Platforms had a net margin of 30.89% and a return on equity of 39.35%. The business’s quarterly revenue was up 26.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $6.03 EPS. Equities research analysts anticipate that Meta Platforms, Inc. will post 26.7 EPS for the current year.

Meta Platforms Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 23rd. Shareholders of record on Monday, December 15th were issued a dividend of $0.525 per share. This represents a $2.10 annualized dividend and a yield of 0.3%. The ex-dividend date was Monday, December 15th. Meta Platforms’s dividend payout ratio (DPR) is currently 9.28%.

Meta Platforms Company Profile

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.