Meta Platforms (NASDAQ:META) Stock Price Down 3% on Analyst Downgrade

Meta Platforms, Inc. (NASDAQ:META) fell 3% during mid-day trading on Friday after Pivotal Research lowered their price target on the stock from $930.00 to $910.00. Pivotal Research currently has a buy rating on the stock. Meta Platforms traded as low as $713.59 and last traded at $716.50. 23,499,403 shares traded hands during mid-day trading, an increase of 29% from the average session volume of 18,218,596 shares. The stock had previously closed at $738.31.

Other equities research analysts also recently issued reports about the stock. The Goldman Sachs Group reiterated a “buy” rating on shares of Meta Platforms in a research note on Tuesday, October 14th. Wall Street Zen cut Meta Platforms from a “buy” rating to a “hold” rating in a research report on Saturday, November 1st. Stifel Nicolaus decreased their target price on Meta Platforms from $875.00 to $785.00 and set a “buy” rating on the stock in a report on Friday, January 23rd. Morgan Stanley increased their price target on Meta Platforms from $750.00 to $825.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Bank of America reduced their price objective on shares of Meta Platforms from $900.00 to $810.00 and set a “buy” rating for the company in a research report on Thursday, October 30th. Five equities research analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Meta Platforms presently has an average rating of “Moderate Buy” and a consensus price target of $847.98.

Insider Activity

In related news, insider Jennifer Newstead sold 519 shares of the company’s stock in a transaction dated Tuesday, December 30th. The shares were sold at an average price of $658.69, for a total value of $341,860.11. Following the transaction, the insider directly owned 28,658 shares in the company, valued at approximately $18,876,738.02. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Javier Olivan sold 517 shares of Meta Platforms stock in a transaction dated Monday, January 26th. The stock was sold at an average price of $665.00, for a total transaction of $343,805.00. Following the completion of the sale, 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 sold 40,113 shares of company stock valued at $24,621,042. 13.61% of the stock is owned by company insiders.

More Meta Platforms News

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

• Positive Sentiment: Q4 beat + AI narrative shift: Meta reported stronger‑than‑expected Q4 revenue and EPS and management framed ad strength as early proof that AI investments are improving monetization and engagement — a narrative some analysts now call an AI profit cycle. Meta’s Story Just Flipped — Seeking Alpha
• Positive Sentiment: Strong guidance & analyst upgrades: Q1 revenue guidance topped Street expectations and many firms raised price targets or reiterated buys, supporting the recent rally and giving institutional investors cover to support higher valuations. MarketBeat: Meta Soars After‑Hours
• Neutral Sentiment: Business diversification tests: Meta is piloting premium subscriptions for Instagram/Facebook/WhatsApp and expanding AI features — potential long‑term upside but unclear near‑term revenue impact. CNBC: Premium subscription tests
• Neutral Sentiment: Supply deals validate buildout but signal capital intensity: large supplier agreements (e.g., with Corning) back the AI data‑center plan while confirming heavy multi‑year spending. CNBC: Corning deal
• Negative Sentiment: Massive 2026 CapEx: Management guided to $115B–$135B of capex for 2026 — far above prior levels — raising near‑term cash intensity and margin dilution concerns despite management saying operating income should hold. Reuters: CapEx rise
• Negative Sentiment: Reality Labs drag: XR/Reality Labs continues to burn cash (multi‑billion losses), creating an ongoing margin headwind and execution risk for non‑ad businesses. TechCrunch: $19B VR burn
• Negative Sentiment: Regulatory & reputational headlines: A New Mexico trial alleging platforms exposed minors to exploitation and reports about content‑blocking controversies add legal and reputational risk that can pressure multiple‑quarter sentiment. Reuters: New Mexico trial
• Negative Sentiment: Near‑term profit‑taking & headline noise: high short‑term expectations after the rally, occasional pundit criticism (e.g., Jim Cramer) and small insider sales add to volatility and can push the stock down after its run. 247WallSt: Jim Cramer critique

Hedge Funds Weigh In On Meta Platforms

Hedge funds have recently added to or reduced their stakes in the stock. Goldstone Financial Group LLC grew its position in shares of Meta Platforms by 44.4% in the 3rd quarter. Goldstone Financial Group LLC now owns 3,752 shares of the social networking company’s stock valued at $2,756,000 after buying an additional 1,153 shares during the last quarter. Spirepoint Private Client LLC lifted its stake in shares of Meta Platforms by 2.7% in the second quarter. Spirepoint Private Client LLC now owns 4,080 shares of the social networking company’s stock worth $3,011,000 after acquiring an additional 109 shares during the period. Diversify Advisory Services LLC lifted its stake in shares of Meta Platforms by 10.4% in the second quarter. Diversify Advisory Services LLC now owns 55,431 shares of the social networking company’s stock worth $43,790,000 after acquiring an additional 5,224 shares during the period. CW Advisors LLC boosted its holdings in Meta Platforms by 27.8% in the second quarter. CW Advisors LLC now owns 176,762 shares of the social networking company’s stock valued at $130,467,000 after acquiring an additional 38,432 shares during the last quarter. Finally, Sequoia Financial Advisors LLC increased its position in Meta Platforms by 11.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 210,526 shares of the social networking company’s stock valued at $155,387,000 after purchasing an additional 20,912 shares during the period. Institutional investors own 79.91% of the company’s stock.

Meta Platforms Trading Down 3.0%

The stock has a market cap of $1.81 trillion, a P/E ratio of 30.49, a price-to-earnings-growth ratio of 1.46 and a beta of 1.29. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.98 and a current ratio of 2.60. The firm’s fifty day simple moving average is $652.06 and its 200-day simple moving average is $696.11.

Meta Platforms (NASDAQ:META) last posted its quarterly earnings data on Wednesday, January 28th. The social networking company reported $8.88 EPS for the quarter, beating analysts’ consensus estimates of $8.16 by $0.72. Meta Platforms had a net margin of 30.08% and a return on equity of 38.61%. The company had revenue of $59.89 billion for the quarter, compared to analyst estimates of $58.33 billion. During the same period in the prior year, the firm posted $8.02 EPS. The company’s quarterly revenue was up 23.8% on a year-over-year basis. Equities research analysts expect that Meta Platforms, Inc. will post 26.7 EPS for the current fiscal year.

Meta Platforms Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 23rd. Stockholders of record on Monday, December 15th were given a $0.525 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. Meta Platforms’s dividend payout ratio (DPR) is 8.94%.

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.