Needham analyst Laura Martin has maintained their neutral stance on META stock, giving a Hold rating on August 5.
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Laura Martin’s rating is based on a combination of factors related to Meta Platforms’ labor productivity and financial performance. She observes that Meta has shown a consistent increase in revenue per full-time employee (FTE) over the past few years, which is a positive indicator for shareholders. However, despite this growth, there are concerns about the company’s free cash flow (FCF) per employee, which has seen a decline in the first two quarters of 2025.
Additionally, while Meta’s free cash flow per employee ranks well compared to other large-cap stocks, the company’s stock-based compensation per employee is notably high. This high compensation could be a factor in the reduced free cash flow to stock-based compensation ratio over time. These mixed signals in financial metrics contribute to the Hold rating, suggesting that while there are strengths, there are also areas of concern that warrant caution.
Martin covers the Communication Services sector, focusing on stocks such as Roku, Meta Platforms, and Trade Desk. According to TipRanks, Martin has an average return of 6.9% and a 48.13% success rate on recommended stocks.
In another report released on August 5, Freedom Capital Markets also downgraded the stock to a Hold with a $800.00 price target.