Meta Platforms (NASDAQ:META) Shares Gap Up After Earnings Beat

Meta Platforms, Inc. (NASDAQ:META)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $668.73, but opened at $737.43. Meta Platforms shares last traded at $717.4530, with a volume of 27,414,798 shares changing hands.

The social networking company reported $8.88 earnings per share for the quarter, beating the consensus estimate of $8.16 by $0.72. The business had revenue of $59.89 billion for the quarter, compared to the consensus estimate of $58.33 billion. Meta Platforms had a net margin of 30.08% and a return on equity of 39.91%. The company’s revenue for the quarter was up 23.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $8.02 earnings per share.

Meta Platforms Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 23rd. Investors of record on Monday, December 15th were issued a $0.525 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $2.10 annualized dividend and a yield of 0.3%. Meta Platforms’s dividend payout ratio is currently 9.28%.

Trending Headlines about Meta Platforms

Here are the key news stories impacting Meta Platforms this week:

• Positive Sentiment: Q4 beat and strong guidance — Meta reported $59.9B revenue and $8.88 EPS (both above estimates) and guided Q1 revenue to $53.5B–$56.5B, signaling continued ad strength and giving investors confidence the AI investments are starting to lift monetization. CNBC: Meta beats on top, bottom lines, gives stronger-than-expected forecast
• Positive Sentiment: Wall Street upgrades and target increases — Multiple firms raised price targets and ratings after the print, reflecting renewed analyst conviction in revenue upside and AI tailwinds (several targets now imply double‑digit upside). MarketBeat: Meta Soars After-Hours
• Positive Sentiment: Technical/market momentum — Analysts and technical commentators note the stock reclaimed key levels and is showing breakout momentum after earnings, which supports further near‑term buying. FXEmpire: Technical Breakout Signals Higher Prices
• Neutral Sentiment: Local PR / community investment — Meta committed $50M to develop a Sac State downtown center; positive for brand and local relations but unlikely to move fundamentals materially. BizJournals: Meta commits $50M to Sac State downtown center
• Neutral Sentiment: Product tests to diversify revenue — Meta is testing premium subscription tiers across Instagram/Facebook/WhatsApp; potential upside long term but unclear near‑term revenue impact. CNET: Meta confirms testing of premium subscriptions
• Negative Sentiment: Huge 2026 CapEx ramp announced — Management expects 2026 capital expenditures of roughly $115B–$135B to build AI infrastructure, a front‑loaded commitment that raises questions about near‑term returns and margin pressure. Reuters: Meta expects annual capital expenditures to rise
• Negative Sentiment: Reality Labs remains a drag — The XR/Reality Labs unit posted an operating loss (~$6.02B in Q4) and prior reporting shows large cash burn, highlighting ongoing margin risk. CNBC: Reality Labs posts $6.02B loss
• Negative Sentiment: XR cash burn and uncertainty — Reporting that Reality Labs burned ~$19B recently (and has had layoffs) is a reminder that Meta’s non‑ad investments are costly and uncertain. TechCrunch: Meta burned $19B on VR
• Negative Sentiment: Small insider sale — COO Javier Oliván sold 517 shares (disclosed); amount is modest but some investors note insider sales when evaluating sentiment. SEC filing: Oliván insider sale

Analyst Ratings Changes

META has been the subject of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft upped their price objective on Meta Platforms from $880.00 to $920.00 and gave the stock a “buy” rating in a research note on Thursday. Stifel Nicolaus upped their price target on Meta Platforms from $785.00 to $820.00 and gave the stock a “buy” rating in a research note on Thursday. Guggenheim increased their price objective on shares of Meta Platforms from $800.00 to $850.00 and gave the company a “buy” rating in a report on Thursday. BNP Paribas Exane started coverage on shares of Meta Platforms in a report on Monday, November 24th. They issued an “outperform” rating and a $800.00 target price on the stock. Finally, Morgan Stanley upped their target price on shares of Meta Platforms from $750.00 to $825.00 and gave the stock an “overweight” rating in a research report on Thursday. Five investment analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, Meta Platforms has a consensus rating of “Moderate Buy” and an average target price of $847.98.

Insider Buying and Selling

In related news, insider Jennifer Newstead sold 519 shares of the company’s stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $658.69, for a total transaction of $341,860.11. Following the sale, the insider owned 28,658 shares of the company’s stock, valued at $18,876,738.02. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Javier Olivan sold 517 shares of the stock in a transaction on Monday, January 26th. The shares were sold at an average price of $665.00, for a total transaction of $343,805.00. Following the transaction, the chief operating officer owned 10,132 shares of the company’s stock, valued at $6,737,780. This trade represents a 4.85% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 40,113 shares of company stock worth $24,621,042. Insiders own 13.61% of the company’s stock.

Institutional Investors Weigh In On Meta Platforms

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in META. Brighton Jones LLC lifted its holdings in shares of Meta Platforms by 1.7% in the 4th quarter. Brighton Jones LLC now owns 34,551 shares of the social networking company’s stock worth $20,230,000 after acquiring an additional 570 shares during the last quarter. Revolve Wealth Partners LLC raised its position in Meta Platforms by 10.2% in the 4th quarter. Revolve Wealth Partners LLC now owns 9,456 shares of the social networking company’s stock worth $5,537,000 after purchasing an additional 875 shares during the period. Headwater Capital Co Ltd lifted its stake in Meta Platforms by 294.7% in the first quarter. Headwater Capital Co Ltd now owns 150,000 shares of the social networking company’s stock worth $86,454,000 after purchasing an additional 112,000 shares during the last quarter. Kooman & Associates boosted its position in shares of Meta Platforms by 2.8% during the second quarter. Kooman & Associates now owns 544 shares of the social networking company’s stock valued at $402,000 after buying an additional 15 shares during the period. Finally, Eagle Global Advisors LLC grew its stake in shares of Meta Platforms by 41.7% during the second quarter. Eagle Global Advisors LLC now owns 28,955 shares of the social networking company’s stock valued at $21,371,000 after buying an additional 8,527 shares during the last quarter. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

Meta Platforms Stock Performance

The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 0.15. The business has a 50 day moving average price of $649.61 and a 200 day moving average price of $696.14. The stock has a market cap of $1.86 trillion, a P/E ratio of 31.42, a PEG ratio of 1.33 and a beta of 1.29.

About Meta Platforms

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.