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Meta Platforms
(NASDAQ:META)
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Rating:76Outperform
Price Target:
$613.00
▼(-10.97% Downside)
Action:Reiterated
Date:05/05/26
Strong financial performance (high margins, returns, and cash generation) is the main driver of the score. This is tempered by weak technicals with the stock trading below key moving averages, and by execution/ROI risk from sharply rising capex/commitments (reinforced by the new debt raise) despite constructive earnings-call momentum. Valuation is supportive with a low P/E, though the dividend is minimal.
Positive Factors
Massive scale & engagement
A 3.5B daily reach creates durable network effects and unrivaled ad inventory depth. High video/Reels engagement increases time spent and ad impressions, underpinning sustained advertiser demand and pricing power across multiple surfaces, supporting long-term revenue resilience.
Negative Factors
Very large, rising capital intensity
A multiyear $125–$145B capex program and a $107B jump in contractual commitments materially increase execution and ROIC risk. If AI monetization or component procurement lags, capital intensity could depress free cash flow and lengthen payback periods for investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Massive scale & engagement
A 3.5B daily reach creates durable network effects and unrivaled ad inventory depth. High video/Reels engagement increases time spent and ad impressions, underpinning sustained advertiser demand and pricing power across multiple surfaces, supporting long-term revenue resilience.
Read all positive factors
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 (META) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.43T
Dividend Yield0.32%
Average Volume (3M)16.62M
Price to Earnings (P/E)20.1
Beta (1Y)1.47
Revenue Growth26.18%
EPS Growth6.07%
CountryUS
Employees76,834
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)27.96
Shares Outstanding2,196,045,700
10 Day Avg. Volume19,327,103
30 Day Avg. Volume16,617,728
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 Cap1.05
Enterprise Value/Revenue7.00
Enterprise Value/Gross Profit8.54
Enterprise Value/Ebitda13.26
Forecast
1Y Price Target
$815.82Price Target Upside18.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering37
EPS Forecast (FY)32.91
Revenue Forecast (FY)$252.92B
Meta Platforms Business Overview & Revenue Model
Company Description
Meta Platforms Inc., which operated as Facebook, Inc. until its October 2021 rebranding, is a technology enterprise focused on developing innovative products that empower people globally to connect and share with their friends and family. These se...
How the Company Makes Money
Meta generates the vast majority of its revenue from selling advertising placements across its Family of Apps—primarily Facebook and Instagram, and to a lesser extent other surfaces within its apps—where advertisers pay to show targeted ads to use...
Meta Platforms Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
Overall the call conveyed strong operational momentum—robust revenue and ad metrics, significant engagement gains (especially video and Reels), rapid adoption of AI products (Muse Spark / Meta AI), accelerating business-AI usage, and large infrastructure investments to scale AI. Key risks highlighted include sharply higher expenses and capital commitments, Reality Labs softness in headsets, one-time tax volatility, geographic outages and regulatory/legal risks, and unrealized investment losses. On balance the positives around growth, monetization improvements, product momentum, and cash/profitability outweighed the near-term cost and regulatory headwinds.Positive Updates
Massive Daily Reach and Strong Engagement
More than 3.5 billion people used at least one Meta app daily in March; Instagram and Facebook daily and monthly actives continued to grow with video driving all-time-high engagement.
Negative Updates
Rising Expenses and Workforce Adjustments
Total Q1 expenses $33.4 billion, up 35% YoY driven mainly by infrastructure depreciation/operating costs and higher employee compensation for AI hires; company signaled plans to reduce headcount in May to streamline operations (headcount was 77.9k, down 1% QoQ).
Read all updates
Q1-2026 Updates
Positive
Negative
Massive Daily Reach and Strong Engagement
More than 3.5 billion people used at least one Meta app daily in March; Instagram and Facebook daily and monthly actives continued to grow with video driving all-time-high engagement.
Read all positive updates
Company Guidance
Meta’s forward guidance for 2026 included Q2 revenue of $58–$61 billion (assuming roughly a 2% FX tailwind to YoY growth), full‑year total expenses of $162–$169 billion (unchanged), an expectation to deliver operating income above 2025 levels, and 2026 capital expenditures (including principal payments on finance leases) of $125–$145 billion (raised from a prior $120–$135 billion range) to support compute and data center build‑out; the company also disclosed a $107 billion step‑up in contractual commitments this quarter, expects a tax rate of ~13%–16% for the remaining quarters of 2026, plans to reduce its employee base in May, and noted ongoing legal/regulatory risks that could materially affect future results.Meta Platforms Financial Statement Overview
Summary
Income Statement
93
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 214.96B | 200.97B | 164.50B | 134.90B | 116.61B | 117.93B |
| Gross Profit | 176.14B | 164.79B | 134.34B | 108.94B | 91.36B | 95.28B |
| EBITDA | 113.43B | 104.55B | 86.88B | 59.05B | 37.69B | 55.27B |
| Net Income | 70.59B | 60.46B | 62.36B | 39.10B | 23.20B | 39.37B |
Balance Sheet | ||||||
| Total Assets | 395.25B | 366.02B | 276.05B | 229.62B | 185.73B | 165.99B |
| Cash, Cash Equivalents and Short-Term Investments | 81.18B | 81.59B | 77.81B | 65.40B | 40.74B | 48.00B |
| Total Debt | 86.77B | 83.90B | 49.06B | 37.23B | 26.59B | 13.87B |
| Total Liabilities | 151.57B | 148.78B | 93.42B | 76.45B | 60.01B | 41.11B |
| Stockholders Equity | 243.68B | 217.24B | 182.64B | 153.17B | 125.71B | 124.88B |
Cash Flow | ||||||
| Free Cash Flow | 48.25B | 46.11B | 54.07B | 43.85B | 19.04B | 39.12B |
| Operating Cash Flow | 124.00B | 115.80B | 91.33B | 71.11B | 50.48B | 57.68B |
| Investing Cash Flow | -115.67B | -102.00B | -47.15B | -24.50B | -28.97B | -7.57B |
| Financing Cash Flow | -7.43B | -20.37B | -40.78B | -19.50B | -22.14B | -50.73B |
Meta Platforms Technical Analysis
Negative
688.55
Price Trends
612.42
Negative
620.64
Negative
648.86
Negative
Market Momentum
-16.10
Positive
37.51
Neutral
7.89
Positive
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 688.55 is above the 20-day moving average (MA) of 582.99, above the 50-day MA of 612.42, and above the 200-day MA of 648.86, indicating a bearish trend. The MACD of -16.10 indicates Positive momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $33.42B | 46.53 | 25.48% | ― | 70.64% | 477.34% | |
78 Outperform | $4.31T | 26.96 | 38.98% | 0.26% | 17.77% | 46.22% | |
76 Outperform | $1.43T | 20.08 | 33.22% | 0.32% | 26.18% | 6.07% | |
70 Outperform | $2.56T | 28.12 | 23.34% | ― | 14.22% | 35.55% | |
67 Neutral | $11.78B | 42.82 | 7.76% | ― | 16.30% | -82.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $7.36B | -17.93 | -18.93% | ― | 10.26% | 23.77% |
* Communication Services Sector Average
META
Meta Platforms
563.29
-153.58
-21.42%
AMZN
Amazon
238.34
17.88
8.11%
GOOGL
Alphabet Class A
357.37
182.03
103.82%
SNAP
Snap
4.44
-4.91
-52.51%
PINS
Pinterest
21.03
-14.65
-41.06%
RDDT
Reddit Inc Class A
173.58
21.35
14.02%
Meta Platforms Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Meta Shareholders Reaffirm Board, Reject ESG Proposals
Neutral
May 29, 2026
On May 27, 2026, Meta Platforms, Inc. held its annual shareholder meeting via live audio webcast, with a quorum representing 92.19% of the combined voting power of its dual-class share structure. Shareholders re-elected all 12 incumbent directors ...
Business Operations and StrategyPrivate Placements and Financing
Meta Platforms Completes $25 Billion Multi-Tranche Debt Offering
Positive
May 4, 2026
On May 4, 2026, Meta Platforms, Inc. completed a multi-tranche debt offering totaling $25 billion in senior notes, with maturities ranging from 2031 to 2066 and coupons between 4.550% and 6.450%. The notes were issued under an existing shelf regis...
Executive/Board ChangesShareholder Meetings
Meta Platforms Announces Upcoming Board of Directors Changes
Neutral
Apr 14, 2026
On April 8, 2026, Meta Platforms, Inc. disclosed that directors Hock E. Tan and Tracey T. Travis informed the company they will not stand for re-election to the board at Meta’s 2026 Annual Meeting of Shareholders. Both will continue to serve...
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.