Meta Platforms, Inc.
Mega Cap · Communication Services · Internet Content & Information
$589.91−$5.06 (-0.85%)
Meta Platforms, Inc.
Mega Cap · Communication Services · Internet Content & Information
$589.91−$5.06 (-0.85%)
Stock analysis
Accumulate
MED CONVICTION
- Meta’s ad impressions and pricing both increased, giving the company more revenue growth to fund AI investment and support future profits.
- Meta’s strong operating margins and return on equity show that its advertising business turns revenue into substantial profit, supporting investment and shareholder returns.
Past performance
3M
-4.0%
6M
-11.7%
1Y
-22.3%
Set alerts
Add zonebelow $579
Trim zoneabove $820
Support · Pivot
$589
0.1% belowResistance · R1
$654
10.8% aboveUnderstand META
1.How does the business make money?Meta mainly sells targeted advertising across Facebook, Instagram, WhatsApp and its other apps, using user activity and audience scale to help businesses reach customers. Payments, subscriptions and Reality Labs are still small, so the company remains heavily dependent on advertising.
2.How are the financials doing?The business is growing quickly and remains highly profitable, with strong cash generation and returns on invested capital. Recent results show revenue rising faster than profit per share, while margins have eased from unusually high levels and cash generation is below its earlier peak.
3.What is the market expecting?Investors generally expect continued advertising growth and a strong long-term payoff from Meta’s AI investments, reflected in a favorable analyst consensus and a valuation that looks moderate relative to the company’s growth. The recent share-price weakness suggests expectations are not uniformly positive, especially around spending and execution.
4.What’s helping the business grow?More ad impressions, better ad pricing and stronger engagement are driving the core business. AI is improving recommendations and ad tools today, while growing use of Meta AI could create new engagement and eventually another revenue stream.
5.What could hurt the business?Meta faces tougher privacy and competition rules, potential youth-safety lawsuits, and the risk that regulators restrict how its platforms operate or collect data. Heavy AI and Reality Labs spending could also reduce profits if those investments do not produce enough user growth or new revenue.
Stock Fundamentals & Key Indicators
52-week range
Low$520.26
High$796.25
Today $589.91
RSI (14)
48.8Neutral
03070100
Overall score
76/100
Reported growth
Revenue growth (TTM)26.2
Sales are growing ahead of the sector average of 16.3%, meaning the business is taking share from peers.
EPS growth (TTM)6.1
Profit per share is growing below the sector average of 26.0%.
EPS growth (Q/Q)62.5
Earnings grew at a strong pace versus last quarter.
Forward outlook
EPS forecast (5Y)19.7
Analysts expect earnings growth ahead of the sector average of 18.1% over the next 5 years.
EPS next year6.2
Analysts expect a solid pace of earnings growth next year.
Analyst Rating and Sentiment
Analyst price targets
Lowest
$580
Current price
$589.91
Median target
$750
Highest
$1,000
LowHigh
Crowd signal
50
Bullish
50%
Bearish
50%
Crowd sentiment leans mixed, with a score of 50/100.
Operating Record
Revenue
Business mix
Jun 30, 2026Advertising97.5% · $222.6B
Payments and Other1.5% · $3.4B
Reality Labs1.0% · $2.3B
Geographic mix
Jun 30, 2026US and Canada43.4% · $99.1B
Europe23.9% · $54.5B
Rest of World19.1% · $43.5B
Asia Pacific13.6% · $31.1B
What's working
- Forward P/E: Investors aren't pricing in much earnings growth, so there's room to be pleasantly surprised.
- ROIC: Money put back into the business keeps coming back out as profit, a hallmark of a durable moat.
What to watch
- Debt exceeds cash by $22.1B, increasing balance-sheet pressure, a warning sign.
- Price / FCF: Cash generation hasn't caught up to the price tag yet.
What the market charges
Forward P/E
Favorable · 48% below avg
18.48x
Price / sales
Reasonable · Priced reasonably against its revenue
6.61x
Price / FCF
Rich · Priced far above what its cash flow currently supports
36.81x
EV / EBITDA
Reasonable · Operating earnings make this price a stretch but plausible
13.96x
How efficiently it compounds
ROIC
Strong · Comfortably clears the bar for efficient capital use
25.4%
ROE
Favorable · 32.9% - strong capital efficiency
29.9%
Debt / equity
Favorable · 0.36 - strong leverage
0.43x
Current ratio
Strong · Comfortable room to cover bills due within a year
2.23x
Earnings· Jul 29
Full report →META Q2 Miss: EPS -14.4% as FCF Collapse Sparks Selloff, Oversold Bounce Underway
Scenario odds · next 30–90 days
Bear case leads · 47%Bull17%
AI monetization accelerates, revenue growth stays >20%, capex peaks, and FCF recovers toward $3-4B per quarter, driving multiple re-rating.
Base36%
Revenue grows 18-22% but capex stays elevated, keeping FCF subdued around $1-2B. Stock trades range-bound between $500-600 as market digests the investment cycle.
Bear47%
Capex continues to outpace revenue, FCF stays depressed, revenue decelerates to <15%, and margins compress further, leading to a drift toward $450-500.
Peer Comparison
| Company | Mkt cap | P/E | Rev growth | Score |
|---|---|---|---|---|
| $1.51T | 22.3 | +27.6% | 76 |
 | $31.11B | 37.6 | +66.6% | 80 |
 | $116.06B | 26.7 | +60.6% | 77 |
 | $308.71B | 23.4 | +16.0% | 77 |
 | $4.33T | 17.8 | +20.1% | 76 |
What is moving META
News
1d ago · Meta Platforms, Inc. via Nasdaq
Noteworthy Friday Option Activity: AVGO, META, NVDA
Mixed- 1d ago · Meta Platforms, Inc. via Yahoo Finance
Meta Stock Edges Higher as Australia Enforcement Risk Intensifies
Bearish 
1d ago · Reddit Inc Class A via Yahoo FinanceReddit Is Still Down 24% This Year. What Will It Take to Get RDDT Stock Back Up to $200?
Mixed- 1d ago · Meta Platforms, Inc. via Seeking Alpha
What's next for Meta Platforms after this quarter's AI-driven selloff?
Mixed 
1d ago · Snap Inc. via Yahoo FinanceHow Serious Are Thousands of Addiction Lawsuits for Meta (META) and Snap (SNAP)?
Mixed- 1d ago · Seeking Alpha
Meta: The AI Capex Panic Will Not Last (NASDAQ:META) - Seeking Alpha
Bullish - 1d ago · Meta Platforms, Inc. via Yahoo Finance
Meta And Alphabet Offer Incredible Value And No One Cares
Bullish