Meta Platforms (META)
NASDAQ:META
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Meta Platforms
(NASDAQ:META)
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Rating:74Outperform
Price Target:
$613.00
▲(6.60% Upside)
Action:ReiteratedDate:03/27/26
The score is driven primarily by very strong financial performance (elite margins and cash generation) and a supportive earnings backdrop in core advertising/engagement, partially offset by a notably weak technical picture (below key moving averages with bearish momentum). Valuation is acceptable but not inexpensive, and the outlook is tempered by materially higher planned 2026 expenses/capex and ongoing regulatory and Reality Labs risks.
Positive Factors
Elite Profitability
Sustained, industry-leading margins signal durable operating leverage and pricing power across Meta’s ad business. High gross and EBIT margins provide room to absorb higher infrastructure spend while preserving core profitability and long-term cash generation capacity.
Negative Factors
Rising Absolute Debt
A material increase in gross debt reduces financial flexibility and raises refinancing and interest exposure over the medium term. If capex or investment cycles extend, higher leverage could constrain capital allocation or require slower buybacks/dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Elite Profitability
Sustained, industry-leading margins signal durable operating leverage and pricing power across Meta’s ad business. High gross and EBIT margins provide room to absorb higher infrastructure spend while preserving core profitability and long-term cash generation capacity.
Read all positive factors
Meta Platforms (META) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.45T
Dividend Yield0.32%
Average Volume (3M)15.31M
Price to Earnings (P/E)27.5
Beta (1Y)1.36
Revenue Growth22.17%
EPS Growth-2.66%
CountryUS
Employees76,834
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)8.88
Shares Outstanding2,187,177,700
10 Day Avg. Volume21,615,583
30 Day Avg. Volume15,312,354
Financial Highlights & Ratios
PEG Ratio-10.75
Price to Book (P/B)7.66
Price to Sales (P/S)8.28
P/FCF Ratio36.09
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue7.45
Enterprise Value/Gross Profit9.09
Enterprise Value/Ebitda14.13
Forecast
1Y Price Target
$862.05Price Target Upside49.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering45
EPS Forecast (FY)29.78
Revenue Forecast (FY)$250.53B
Meta Platforms Business Overview & Revenue Model
Company Description
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments,...
How the Company Makes Money
Meta primarily makes money by selling digital advertising across its apps and services. Advertisers buy ad placements that appear in users’ feeds, stories, reels, and other surfaces, and campaigns are typically targeted using signals such as user ...
Meta Platforms Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Meta Platforms is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Meta Platforms is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyMeta Platforms Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call highlighted strong commercial momentum: robust revenue and ad growth (+25% total revenue; +24% ad revenue), meaningful engagement and ad-performance gains (impressions +18%, avg ad price +6%), clear traction for AI-powered product features, and solid cash generation. Offsetting risks include a 12% decline in Reality Labs revenue and continuing losses there, substantial near-term expense and CapEx increases to scale AI infrastructure ($162B–$169B expenses; $115B–$135B capex guidance), capacity constraints, and legal/regulatory uncertainties. On balance, the positives around accelerating ad monetization, user engagement, AI product traction, and liquidity outweigh the near-term costs and risks, though execution and regulatory outcomes will be critical to sustaining momentum.Positive Updates
Strong Top-Line Growth
Q4 total family of apps revenue was $58.9B, up 25% year-over-year; Q4 family of apps ad revenue was $58.1B, up 24% year-over-year (23% constant currency).
Negative Updates
Reality Labs Revenue Decline and Ongoing Losses
Reality Labs Q4 revenue was $955M, down 12% year-over-year (lapped Quest 3 introduction), and company expects Reality Labs operating losses in 2026 to remain similar to 2025 (peak losses).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Q4 total family of apps revenue was $58.9B, up 25% year-over-year; Q4 family of apps ad revenue was $58.1B, up 24% year-over-year (23% constant currency).
Read all positive updates
Company Guidance
Meta guided Q1 2026 revenue of $53.5B–$56.5B (assuming an ~4% FX tailwind to YoY growth), full‑year 2026 total expenses of $162B–$169B, and full‑year 2026 capital expenditures (including finance lease principal) of $115B–$135B; it expects 2026 operating income to be above 2025 operating income (in absolute dollars), a full‑year tax rate of 13%–16%, and Reality Labs operating losses to remain similar to 2025, while relying on strong cash generation to fund infrastructure but remaining open to modest, cost‑efficient external financing that could result in a positive net‑debt position. For context, Q4 closed with $81.6B of cash and marketable securities, $58.7B of debt, $14.1B of free cash flow, and 78,800 employees (up 6% YoY).Meta Platforms Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 200.97B | 164.50B | 134.90B | 116.61B | 117.93B |
| Gross Profit | 164.79B | 134.34B | 108.94B | 91.36B | 95.28B |
| EBITDA | 104.55B | 86.88B | 59.05B | 37.69B | 55.27B |
| Net Income | 60.46B | 62.36B | 39.10B | 23.20B | 39.37B |
Balance Sheet | |||||
| Total Assets | 366.02B | 276.05B | 229.62B | 185.73B | 165.99B |
| Cash, Cash Equivalents and Short-Term Investments | 81.59B | 77.81B | 65.40B | 40.74B | 48.00B |
| Total Debt | 83.90B | 49.06B | 37.23B | 26.59B | 13.87B |
| Total Liabilities | 148.78B | 93.42B | 76.45B | 60.01B | 41.11B |
| Stockholders Equity | 217.24B | 182.64B | 153.17B | 125.71B | 124.88B |
Cash Flow | |||||
| Free Cash Flow | 46.11B | 54.07B | 43.85B | 19.04B | 39.12B |
| Operating Cash Flow | 115.80B | 91.33B | 71.11B | 50.48B | 57.68B |
| Investing Cash Flow | -102.00B | -47.15B | -24.50B | -28.97B | -7.57B |
| Financing Cash Flow | -20.37B | -40.78B | -19.50B | -22.14B | -50.73B |
Meta Platforms Technical Analysis
Negative
575.05
Price Trends
637.75
Negative
638.04
Negative
683.36
Negative
Market Momentum
-21.78
Positive
40.97
Neutral
63.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For META, the sentiment is Negative. The current price of 575.05 is below the 20-day moving average (MA) of 598.60, below the 50-day MA of 637.75, and below the 200-day MA of 683.36, indicating a bearish trend. The MACD of -21.78 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 63.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for META.
Meta Platforms Risk Analysis
Meta Platforms disclosed 48 risk factors in its most recent earnings report. Meta Platforms reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Meta Platforms Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.45T | 27.52 | 30.56% | 0.32% | 22.17% | -2.66% | |
72 Outperform | $26.96B | 80.88 | 20.89% | ― | 69.71% | ― | |
71 Outperform | $3.69T | 28.69 | 35.00% | 0.26% | 15.22% | 34.19% | |
69 Neutral | $2.29T | 31.67 | 21.87% | ― | 11.48% | 50.70% | |
68 Neutral | $11.66B | 41.90 | 8.74% | ― | 16.79% | 819.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $8.11B | -29.98 | -20.72% | ― | 11.75% | 49.19% |
* Communication Services Sector Average
META
Meta Platforms
575.05
66.19
13.01%
AMZN
Amazon
213.77
43.11
25.26%
GOOGL
Alphabet Class A
305.46
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111.83%
SNAP
Snap
4.80
-2.43
-33.61%
PINS
Pinterest
18.20
-6.48
-26.26%
RDDT
Reddit Inc Class A
141.14
52.25
58.78%
Meta Platforms Corporate Events
Executive/Board Changes
Meta Platforms Names Dina Powell McCormick President, Vice Chair
Positive
Jan 16, 2026
Meta Platforms’ board of directors appointed Dina Powell McCormick as President and Vice Chairman of the company, effective January 12, 2026, bringing to the leadership team a veteran executive with extensive experience in global finance and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.