Meta Platforms (META) AI Stock Analysis

• Market Cap: $1.70T
• Dividend Yield: 0.31%
• Average Volume (3M): 23.20M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 1.31
• Revenue Growth: 21.27%
• EPS Growth: 6.16%
• Country: US
• Employees: 76,834
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.05
• Shares Outstanding: 2,177,889,200
• 10 Day Avg. Volume: 16,189,816
• 30 Day Avg. Volume: 23,201,220
• PEG Ratio: 0.38
• Price to Book (P/B): 8.12
• Price to Sales (P/S): 9.02
• P/FCF Ratio: 27.44
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 10.00
• Enterprise Value/Gross Profit: 12.20
• Enterprise Value/Ebitda: 18.53
• 1Y Price Target: $832.06
• Price Target Upside: 24.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 43
• EPS Forecast (FY): 22.9
• Revenue Forecast (FY): $199.46B

• Rating: 76 Outperform
• Price Target: $753.00 ▲(12.93% Upside)

Meta Platforms' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. However, the high valuation and mixed technical indicators suggest caution. The company's strategic focus on AI and engagement growth is promising, but investors should monitor expense management and regulatory developments closely.

Positive Factors

Revenue Growth

Meta's strong revenue growth indicates robust demand and effective monetization strategies, supporting long-term financial health and market leadership.

AI Advancements

AI advancements enhance Meta's ad efficiency and user engagement, positioning the company for sustained competitive advantage and growth.

Strong Balance Sheet

A strong balance sheet with low leverage provides Meta with financial flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Increased Expenses

Rising expenses, driven by legal and infrastructure costs, could pressure margins and limit profitability if not managed effectively.

Regulatory Challenges

Regulatory challenges in key markets could impact Meta's operations and financial results, posing risks to its business model and growth prospects.

High Tax Rate

An unusually high tax rate negatively impacts net income, reducing available capital for reinvestment and shareholder returns.

Meta Platforms Business Overview & Revenue Model

Company Description

Meta Platforms, Inc. (formerly Facebook, Inc.) is a multinational technology conglomerate based in Menlo Park, California. The company operates in the social media and virtual reality sectors, providing platforms for social networking, communication, and entertainment. Its core products include Facebook, Instagram, WhatsApp, and Oculus, among others. Meta is focused on building community and fostering connections through its various services and applications, while also investing heavily in developing the metaverse—a collective virtual shared space.

How the Company Makes Money

Meta generates the majority of its revenue through advertising. Businesses pay to promote their products and services on Meta's platforms, leveraging advanced targeting capabilities based on user data and behavior. This includes display ads, video ads, and sponsored content across its various services. Additionally, Meta earns revenue through its Reality Labs segment, which includes the sale of virtual reality hardware, such as Oculus devices, and software applications. The company has formed significant partnerships with various advertisers and content creators to enhance its monetization strategies. Furthermore, Meta's investments in the metaverse and augmented reality may open new revenue streams in the future as these technologies evolve.

Meta Platforms Financial Statement Overview

Summary

Meta Platforms exhibits strong financial health with robust profitability, efficient operations, and a solid balance sheet. The company continues to grow its revenue and maintain high margins, although recent declines in free cash flow warrant attention. Overall, Meta is well-positioned in the Internet Content & Information industry with a stable financial foundation.

Income Statement

Meta Platforms demonstrates strong profitability with a high gross profit margin of 81.95% and a net profit margin of 39.99% in TTM. The company has shown consistent revenue growth, with a 5.96% increase in the latest period, indicating robust demand for its services. EBIT and EBITDA margins are also impressive at 45.29% and 54.65%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.25, indicating prudent financial leverage. The return on equity is high at 39.33%, reflecting effective use of shareholders' funds to generate profits. The equity ratio stands at 63.87%, suggesting a strong capital structure with significant equity financing.

Cash Flow

While Meta Platforms maintains a healthy operating cash flow to net income ratio of 2.74, indicating strong cash generation, the free cash flow has declined by 10.56% in the latest period. The free cash flow to net income ratio is 0.49, which is reasonable but shows room for improvement in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	189.46B	164.50B	134.90B	116.61B	117.93B	85.97B
Gross Profit	155.35B	134.34B	108.94B	91.36B	95.28B	69.27B
EBITDA	102.29B	86.88B	59.05B	37.69B	55.27B	39.53B
Net Income	58.53B	62.36B	39.10B	23.20B	39.37B	29.15B
Balance Sheet
Total Assets	303.84B	276.05B	229.62B	185.73B	165.99B	159.32B
Cash, Cash Equivalents and Short-Term Investments	44.45B	77.81B	65.40B	40.74B	48.00B	61.95B
Total Debt	51.06B	49.06B	37.23B	26.59B	13.87B	10.65B
Total Liabilities	109.78B	93.42B	76.45B	60.01B	41.11B	31.03B
Stockholders Equity	194.07B	182.64B	153.17B	125.71B	124.88B	128.29B
Cash Flow
Free Cash Flow	44.84B	54.07B	43.85B	19.04B	39.12B	23.63B
Operating Cash Flow	107.57B	91.33B	71.11B	50.48B	57.68B	38.75B
Investing Cash Flow	-89.31B	-47.15B	-24.50B	-28.97B	-7.57B	-30.06B
Financing Cash Flow	-50.98B	-40.78B	-19.50B	-22.14B	-50.73B	-10.29B

Meta Platforms Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 666.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For META, the sentiment is Neutral. The current price of 666.8 is above the 20-day moving average (MA) of 626.04, below the 50-day MA of 673.83, and below the 200-day MA of 670.83, indicating a neutral trend. The MACD of -2.00 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 88.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for META.

Meta Platforms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	85 Outperform	$3.88T	31.69	35.45%	0.26%	13.55%	34.26%
PINS	77 Outperform	$18.07B	9.27	51.49%	―	16.79%	819.94%
META	76 Outperform	$1.70T	29.75	32.64%	0.31%	21.27%	6.16%
RDDT	75 Outperform	$44.36B	130.51	15.22%	―	69.71%	―
AMZN	71 Outperform	$2.45T	32.05	24.33%	―	11.48%	50.70%
SNAP	63 Neutral	$13.60B	―	-22.38%	―	11.75%	49.19%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Meta Platforms Corporate Events

Meta Platforms Completes $30 Billion Debt Offering

On November 3, 2025, Meta Platforms completed a significant debt offering, issuing $30 billion in senior notes with varying maturities ranging from 2030 to 2065. This strategic financial move, facilitated through an underwriting agreement with major financial institutions, aims to bolster the company’s financial position and support its long-term operational goals.