Meta Platforms (NASDAQ:META) Trading Down 2.6% After Analyst Downgrade

Meta Platforms, Inc. (NASDAQ:META)’s stock price was down 2.6% on Tuesday after UBS Group lowered their price target on the stock from $915.00 to $830.00. UBS Group currently has a buy rating on the stock. Meta Platforms traded as low as $600.00 and last traded at $604.12. Approximately 15,038,064 shares traded hands during trading, an increase of 8% from the average daily volume of 13,903,774 shares. The stock had previously closed at $620.25.

Several other equities research analysts have also commented on the stock. KeyCorp reduced their price target on shares of Meta Platforms from $905.00 to $875.00 and set an “overweight” rating for the company in a report on Thursday, October 30th. Needham & Company LLC restated a “hold” rating on shares of Meta Platforms in a report on Thursday, October 30th. Bank of America decreased their price target on Meta Platforms from $900.00 to $810.00 and set a “buy” rating for the company in a research note on Thursday, October 30th. Cantor Fitzgerald boosted their price objective on shares of Meta Platforms from $720.00 to $750.00 and gave the company an “overweight” rating in a report on Thursday, January 8th. Finally, Royal Bank Of Canada lowered their price target on shares of Meta Platforms from $840.00 to $810.00 and set an “outperform” rating on the stock in a report on Thursday, October 30th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $821.55.

Insiders Place Their Bets

In related news, CAO Aaron Anderson sold 726 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $591.60, for a total transaction of $429,501.60. Following the completion of the sale, the chief accounting officer directly owned 6,035 shares in the company, valued at approximately $3,570,306. The trade was a 10.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert M. Kimmitt sold 600 shares of Meta Platforms stock in a transaction on Monday, November 17th. The stock was sold at an average price of $609.35, for a total transaction of $365,610.00. Following the sale, the director directly owned 7,347 shares in the company, valued at approximately $4,476,894.45. This trade represents a 7.55% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 40,115 shares of company stock valued at $24,741,055. 13.61% of the stock is owned by corporate insiders.

Meta Platforms News Summary

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

• Positive Sentiment: Meta will begin showing ads on Threads globally next week — Threads has passed ~400M users and data suggests rapid DAU growth versus X; global ad availability is a direct near‑term revenue catalyst as the company starts to monetize that audience. Meta to begin rolling out Threads ads globally
• Positive Sentiment: Meta’s new AI lab (Superintelligence Labs) has delivered its first in‑house models, per the CTO — this progress supports product differentiation, reduces dependency on third‑party models, and improves the narrative around AI ROI for Meta’s heavy capex. Exclusive: Meta’s new AI team has delivered first key models
• Positive Sentiment: Oklo’s stock upgrade highlights Meta’s agreement to use advanced nuclear power for data centers — a multi‑year, binding energy supply deal could lower long‑term data‑center energy costs and improve sustainability credentials. Oklo Stock Upgraded to Buy. Meta Nuclear Deal Is a ‘Meaningful Step Forward.
• Neutral Sentiment: UBS trimmed its price target (from $915 to $830) but kept a buy rating — analysts still see upside, though the lowered target highlights ongoing uncertainty around timing/returns of AI investments. UBS lowers META price target
• Neutral Sentiment: Meta cut ~1,500 Reality Labs roles and reported additional smaller layoffs — a cost‑reduction move that trims losses in non‑core metaverse projects but signals scaling back of prior bets. Meta lays off 331 workers in Washington state
• Negative Sentiment: The FTC will appeal its loss in the antitrust case over Instagram and WhatsApp — renewed legal risk keeps a regulatory overhang that could drive volatility and potential future remedies. FTC will appeal ruling in Meta antitrust case
• Negative Sentiment: Some customers left Manus after Meta’s ~$2B acquisition — customer attrition and privacy concerns around the buy create execution and reputational risk for Meta’s AI push. Meta’s $2 billion Manus deal pushes away some customers
• Negative Sentiment: UK regulator alleges Meta profited from illegal gambling ads — another regulatory/PR headwind that could prompt stricter oversight or fines in key markets. Britain accuses Meta of profiting from illegal gambling ads
• Negative Sentiment: Insider sale: a director sold 580 shares (filed disclosure) — small size but sometimes taken by investors as a modest negative signal. Insider filing: Kimmitt sale

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Westchester Capital Management Inc. acquired a new position in shares of Meta Platforms during the 3rd quarter valued at about $26,000. Bare Financial Services Inc acquired a new position in Meta Platforms in the 2nd quarter valued at about $30,000. Evergreen Private Wealth LLC increased its stake in Meta Platforms by 237.5% during the 2nd quarter. Evergreen Private Wealth LLC now owns 54 shares of the social networking company’s stock worth $40,000 after buying an additional 38 shares during the period. Briaud Financial Planning Inc acquired a new stake in shares of Meta Platforms in the second quarter valued at $42,000. Finally, Knuff & Co LLC purchased a new position in shares of Meta Platforms in the 2nd quarter valued at about $44,000. 79.91% of the stock is owned by hedge funds and other institutional investors.

Meta Platforms Stock Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.98 and a current ratio of 1.98. The company has a market capitalization of $1.54 trillion, a PE ratio of 27.07, a P/E/G ratio of 1.19 and a beta of 1.29. The stock’s 50-day simple moving average is $640.41 and its 200 day simple moving average is $697.92.

Meta Platforms (NASDAQ:META) last announced its quarterly earnings results on Wednesday, October 29th. The social networking company reported $7.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.74 by $0.51. The firm had revenue of $51.24 billion during the quarter, compared to the consensus estimate of $49.34 billion. Meta Platforms had a return on equity of 39.35% and a net margin of 30.89%.The firm’s quarterly revenue was up 26.2% compared to the same quarter last year. During the same period in the prior year, the company posted $6.03 earnings per share. As a group, research analysts expect that Meta Platforms, Inc. will post 26.7 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

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

About Meta Platforms

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.