Meta Platforms (NASDAQ:META) Trading 10.4% Higher After Strong Earnings

Shares of Meta Platforms, Inc. (NASDAQ:META) traded up 10.4% on Thursday following a stronger than expected earnings report. The stock traded as high as $744.00 and last traded at $738.31. 59,572,751 shares traded hands during mid-day trading, an increase of 232% from the average session volume of 17,922,188 shares. The stock had previously closed at $668.73.

The social networking company reported $8.88 earnings per share for the quarter, beating analysts’ consensus estimates of $8.16 by $0.72. The company had revenue of $59.89 billion for the quarter, compared to the consensus estimate of $58.33 billion. Meta Platforms had a return on equity of 38.61% and a net margin of 30.08%.Meta Platforms’s revenue was up 23.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $8.02 earnings per share.

Meta Platforms Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 23rd. Investors of record on Monday, December 15th were issued a $0.525 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. Meta Platforms’s dividend payout ratio (DPR) is presently 8.94%.

Meta Platforms News Summary

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

• Positive Sentiment: Q4 beat + AI narrative shift: Meta reported stronger‑than‑expected Q4 revenue and EPS and management framed ad strength as early proof that AI investments are improving monetization and engagement — a narrative some analysts now call an AI profit cycle. Meta’s Story Just Flipped — Seeking Alpha
• Positive Sentiment: Strong guidance & analyst upgrades: Q1 revenue guidance topped Street expectations and many firms raised price targets or reiterated buys, supporting the recent rally and giving institutional investors cover to support higher valuations. MarketBeat: Meta Soars After‑Hours
• Neutral Sentiment: Business diversification tests: Meta is piloting premium subscriptions for Instagram/Facebook/WhatsApp and expanding AI features — potential long‑term upside but unclear near‑term revenue impact. CNBC: Premium subscription tests
• Neutral Sentiment: Supply deals validate buildout but signal capital intensity: large supplier agreements (e.g., with Corning) back the AI data‑center plan while confirming heavy multi‑year spending. CNBC: Corning deal
• Negative Sentiment: Massive 2026 CapEx: Management guided to $115B–$135B of capex for 2026 — far above prior levels — raising near‑term cash intensity and margin dilution concerns despite management saying operating income should hold. Reuters: CapEx rise
• Negative Sentiment: Reality Labs drag: XR/Reality Labs continues to burn cash (multi‑billion losses), creating an ongoing margin headwind and execution risk for non‑ad businesses. TechCrunch: $19B VR burn
• Negative Sentiment: Regulatory & reputational headlines: A New Mexico trial alleging platforms exposed minors to exploitation and reports about content‑blocking controversies add legal and reputational risk that can pressure multiple‑quarter sentiment. Reuters: New Mexico trial
• Negative Sentiment: Near‑term profit‑taking & headline noise: high short‑term expectations after the rally, occasional pundit criticism (e.g., Jim Cramer) and small insider sales add to volatility and can push the stock down after its run. 247WallSt: Jim Cramer critique

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. TD Cowen reiterated a “buy” rating on shares of Meta Platforms in a research note on Tuesday, January 13th. Robert W. Baird boosted their price target on Meta Platforms from $815.00 to $830.00 and gave the company an “outperform” rating in a report on Thursday. UBS Group reaffirmed a “buy” rating and issued a $872.00 price objective (up previously from $830.00) on shares of Meta Platforms in a research note on Thursday. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $860.00 price objective (up from $750.00) on shares of Meta Platforms in a research report on Thursday. Finally, BMO Capital Markets increased their target price on shares of Meta Platforms from $710.00 to $730.00 and gave the stock a “market perform” rating in a report on Thursday. Five research analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $847.98.

Insider Transactions at Meta Platforms

In related news, insider Jennifer Newstead sold 519 shares of Meta Platforms stock in a transaction dated Tuesday, December 30th. The stock was sold at an average price of $658.69, for a total value of $341,860.11. Following the completion of the transaction, the insider owned 28,658 shares in the company, valued at approximately $18,876,738.02. This trade represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Javier Olivan sold 517 shares of the business’s stock in a transaction that occurred on Monday, January 26th. The shares were sold at an average price of $665.00, for a total value of $343,805.00. Following the transaction, the chief operating officer directly owned 10,132 shares in the company, valued at approximately $6,737,780. This represents a 4.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 40,113 shares of company stock valued at $24,621,042 in the last ninety days. Corporate insiders own 13.61% of the company’s stock.

Institutional Trading of Meta Platforms

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in Meta Platforms by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock worth $132,015,115,000 after acquiring an additional 7,269,279 shares in the last quarter. State Street Corp boosted its position in Meta Platforms by 1.9% during the second quarter. State Street Corp now owns 86,925,674 shares of the social networking company’s stock valued at $64,158,971,000 after purchasing an additional 1,650,435 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Meta Platforms by 1.3% in the 2nd quarter. Geode Capital Management LLC now owns 51,575,209 shares of the social networking company’s stock valued at $37,902,948,000 after buying an additional 682,768 shares in the last quarter. Capital World Investors grew its holdings in Meta Platforms by 0.7% in the third quarter. Capital World Investors now owns 39,247,690 shares of the social networking company’s stock worth $28,823,375,000 after purchasing an additional 278,180 shares during the last quarter. Finally, Norges Bank acquired a new position in Meta Platforms during the 2nd quarter valued at about $23,155,393,000. Institutional investors own 79.91% of the company’s stock.

Meta Platforms Trading Down 3.0%

The company has a debt-to-equity ratio of 0.27, a current ratio of 2.60 and a quick ratio of 1.98. The stock has a market cap of $1.81 trillion, a price-to-earnings ratio of 30.49, a P/E/G ratio of 1.46 and a beta of 1.29. The company’s fifty day moving average price is $652.06 and its 200-day moving average price is $696.11.

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.