Meta Platforms, Inc. (META)
NASDAQ:META
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Meta Platforms
(NASDAQ:META)
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Rating:76Outperform
Price Target:
$688.00
▼(-0.08% 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
Scale & Engagement
Meta's massive daily reach and rising video engagement create durable network effects that sustain advertiser demand and targeting scale. A 3.5B+ daily user base supports pricing power and ad inventory depth, making monetization improvements stickier over quarters and enabling cross-product ad selling.
Negative Factors
Very High CapEx & Commitments
A multi-year infrastructure build to support AI requires very large, front-loaded capital and contractual commitments, raising execution and ROIC risk. If revenue/margin gains from AI lag, the capital intensity could compress returns and make free cash flow and investment payback more volatile over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Engagement
Meta's massive daily reach and rising video engagement create durable network effects that sustain advertiser demand and targeting scale. A 3.5B+ daily user base supports pricing power and ad inventory depth, making monetization improvements stickier over quarters and enabling cross-product ad selling.
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
$1.55T
Dividend Yield0.32%
Average Volume (3M)15.55M
Price to Earnings (P/E)13.5
Beta (1Y)1.45
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. Volume14,487,785
30 Day Avg. Volume15,554,230
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/Revenue7.41
Enterprise Value/Gross Profit9.04
Enterprise Value/Ebitda14.04
Forecast
1Y Price Target
$817.71Price Target Upside18.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering38
EPS Forecast (FY)32.81
Revenue Forecast (FY)$252.82B
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 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
620.26
Negative
637.93
Negative
671.07
Negative
Market Momentum
-7.27
Positive
41.47
Neutral
51.73
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 688.55 is above the 20-day moving average (MA) of 628.41, above the 50-day MA of 620.26, and above the 200-day MA of 671.07, indicating a bearish trend. The MACD of -7.27 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 51.73 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $4.79T | 13.90 | 38.98% | 0.26% | 17.77% | 46.22% | |
79 Outperform | $30.63B | 31.61 | 25.48% | ― | 70.64% | 477.34% | |
76 Outperform | $1.55T | 13.54 | 33.22% | 0.32% | 26.18% | 6.07% | |
74 Outperform | $2.85T | 18.49 | 23.34% | ― | 14.22% | 35.55% | |
67 Neutral | $11.16B | -39.66 | 7.76% | ― | 16.30% | -82.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $9.40B | -21.82 | -18.93% | ― | 10.26% | 23.77% |
* Communication Services Sector Average
META
Meta Platforms
602.61
-32.51
-5.12%
AMZN
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GOOGL
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SNAP
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5.55
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PINS
Pinterest
18.84
-13.42
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RDDT
Reddit Inc Class A
154.88
49.24
46.61%
Meta Platforms Corporate Events
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.