Meta Platforms (NASDAQ:META) Trading Down 3% on Analyst Downgrade

Meta Platforms, Inc. (NASDAQ:META)’s share price dropped 3% on Friday after Pivotal Research lowered their price target on the stock from $930.00 to $910.00. Pivotal Research currently has a buy rating on the stock. Meta Platforms traded as low as $713.59 and last traded at $716.50. Approximately 23,499,403 shares changed hands during trading, an increase of 29% from the average daily volume of 18,218,596 shares. The stock had previously closed at $738.31.

Other analysts also recently issued reports about the company. Monness Crespi & Hardt decreased their target price on Meta Platforms from $860.00 to $808.00 and set a “buy” rating for the company in a research report on Thursday, October 30th. Citizens Jmp reiterated an “outperform” rating and set a $900.00 price target (up previously from $750.00) on shares of Meta Platforms in a research note on Monday, November 24th. Truist Financial decreased their price objective on Meta Platforms from $900.00 to $875.00 and set a “buy” rating for the company in a report on Thursday, October 30th. Rothschild & Co Redburn upgraded Meta Platforms from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $740.00 to $900.00 in a research note on Monday, January 26th. Finally, Bank of America cut their target price on shares of Meta Platforms from $900.00 to $810.00 and set a “buy” rating for the company in a research report on Thursday, October 30th. Five research analysts have rated the stock with a Strong Buy rating, forty have issued a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $847.98.

Insider Buying and Selling

In related news, COO Javier Olivan sold 2,610 shares of the company’s stock in a transaction that occurred on Saturday, November 15th. The shares were sold at an average price of $609.46, for a total transaction of $1,590,690.60. Following the sale, the chief operating officer owned 9,784 shares of the company’s stock, valued at approximately $5,962,956.64. This represents a 21.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Susan J. Li sold 6,875 shares of the stock in a transaction that occurred on Saturday, November 15th. The stock was sold at an average price of $609.46, for a total transaction of $4,190,037.50. Following the completion of the sale, the chief financial officer owned 88,370 shares in the company, valued at $53,857,980.20. This represents a 7.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 40,113 shares of company stock valued at $24,621,042 in the last three months. Insiders own 13.61% of the company’s stock.

More Meta Platforms News

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

Institutional Trading of Meta Platforms

Institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank purchased a new position in shares of Meta Platforms in the 2nd quarter worth about $23,155,393,000. Laurel Wealth Advisors LLC lifted its position in Meta Platforms by 73,443.1% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 8,417,003 shares of the social networking company’s stock worth $6,212,506,000 after buying an additional 8,405,558 shares during the last quarter. Vanguard Group Inc. boosted its stake in Meta Platforms by 3.8% in the fourth quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock worth $132,015,115,000 after buying an additional 7,269,279 shares in the last quarter. State Street Corp grew 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 acquiring an additional 1,650,435 shares during the last quarter. Finally, Danske Bank A S purchased a new position in shares of Meta Platforms during the third quarter worth approximately $1,191,175,000. Hedge funds and other institutional investors own 79.91% of the company’s stock.

Meta Platforms Price Performance

The stock has a market capitalization of $1.81 trillion, a PE ratio of 30.49, a P/E/G ratio of 1.46 and a beta of 1.29. 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 firm’s 50 day simple moving average is $652.06 and its 200 day simple moving average is $696.01.

Meta Platforms (NASDAQ:META) last released its earnings results on Wednesday, January 28th. The social networking company reported $8.88 EPS for the quarter, beating the consensus estimate of $8.16 by $0.72. The company had revenue of $59.89 billion for the quarter, compared to analyst estimates of $58.33 billion. Meta Platforms had a net margin of 30.08% and a return on equity of 38.61%. The firm’s quarterly revenue was up 23.8% compared to the same quarter last year. During the same quarter last year, the firm earned $8.02 EPS. As a group, equities analysts forecast that Meta Platforms, Inc. will post 26.7 EPS for the current fiscal year.

Meta Platforms Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 23rd. Stockholders of record on Monday, December 15th were paid a dividend of $0.525 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 was Monday, December 15th. Meta Platforms’s dividend payout ratio (DPR) is 8.94%.

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.