Is Meta Platforms Stock a Good Investment?
Meta Platforms Investment Advice | META |
- Examine Meta Platforms' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Meta Platforms' leadership team and their track record. Good management can help Meta Platforms navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact Meta Platforms' business and its evolving consumer preferences.
- Compare Meta Platforms' performance and market position to its competitors. Analyze how Meta Platforms is positioned in terms of product offerings, innovation, and market share.
- Check if Meta Platforms pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Meta Platforms' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Meta Platforms stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Meta Platforms is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Meta Platforms Stock
Researching Meta Platforms' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 79.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.0. Meta Platforms recorded earning per share (EPS) of 21.21. The entity last dividend was issued on the 16th of December 2024.
To determine if Meta Platforms is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Meta Platforms' research are outlined below:
| Meta Platforms has a frail financial position based on the latest SEC disclosures | |
| Over 79.0% of the company shares are owned by institutional investors | |
| Latest headline from seekingalpha.com: Meta unveils new Llama 3.3 AI model |
Meta Platforms Quarterly Good Will |
|
Meta Platforms uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Meta Platforms. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Meta Platforms' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 1st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Meta Platforms' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Meta Platforms' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2013-01-30 | 2012-12-31 | 0.15 | 0.17 | 0.02 | 13 | ||
2014-01-29 | 2013-12-31 | 0.27 | 0.31 | 0.04 | 14 | ||
2015-01-28 | 2014-12-31 | 0.49 | 0.54 | 0.05 | 10 | ||
2013-07-24 | 2013-06-30 | 0.14 | 0.19 | 0.05 | 35 | ||
2013-10-30 | 2013-09-30 | 0.19 | 0.25 | 0.06 | 31 | ||
2014-07-23 | 2014-06-30 | 0.32 | 0.42 | 0.1 | 31 | ||
2014-04-23 | 2014-03-31 | 0.24 | 0.34 | 0.1 | 41 | ||
2016-01-27 | 2015-12-31 | 0.68 | 0.79 | 0.11 | 16 |
Meta Platforms Target Price Consensus
Meta target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Meta Platforms' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 68 | Strong Buy |
Most Meta analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Meta stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Meta Platforms, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationMeta Platforms Target Price Projection
Meta Platforms' current and average target prices are 613.57 and 341.68, respectively. The current price of Meta Platforms is the price at which Meta Platforms is currently trading. On the other hand, Meta Platforms' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Meta Platforms Market Quote on 10th of December 2024
Target Price
Analyst Consensus On Meta Platforms Target Price
Meta Platforms Analyst Ratings
Meta Platforms' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Meta Platforms stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Meta Platforms' financials, market performance, and future outlook by experienced professionals. Meta Platforms' historical ratings below, therefore, can serve as a valuable tool for investors.Know Meta Platforms' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Meta Platforms is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Meta Platforms backward and forwards among themselves. Meta Platforms' institutional investor refers to the entity that pools money to purchase Meta Platforms' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 29.2 M | Northern Trust Corp | 2024-09-30 | 20.7 M | Legal & General Group Plc | 2024-09-30 | 17.6 M | Amvescap Plc. | 2024-09-30 | 17.6 M | Nuveen Asset Management, Llc | 2024-09-30 | 16.1 M | Bank Of America Corp | 2024-09-30 | 16 M | Alliancebernstein L.p. | 2024-09-30 | 15.3 M | Bank Of New York Mellon Corp | 2024-09-30 | 14.6 M | Jennison Associates Llc | 2024-09-30 | 14.4 M | Vanguard Group Inc | 2024-09-30 | 189.7 M | Blackrock Inc | 2024-06-30 | 161.1 M |
Meta Platforms' market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 1.55 T.Market Cap |
|
Meta Platforms' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.19 | 0.14 | |
| Return On Capital Employed | 0.24 | 0.18 | |
| Return On Assets | 0.17 | 0.11 | |
| Return On Equity | 0.26 | 0.14 |
Determining Meta Platforms' profitability involves analyzing its financial statements and using various financial metrics to determine if Meta Platforms is a good buy. For example, gross profit margin measures Meta Platforms' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Meta Platforms' profitability and make more informed investment decisions.
Meta Platforms' Earnings Breakdown by Geography
Please note, the presentation of Meta Platforms' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Meta Platforms' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Meta Platforms' management manipulating its earnings.
Evaluate Meta Platforms' management efficiency
Meta Platforms has return on total asset (ROA) of 0.1719 % which means that it generated a profit of $0.1719 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3613 %, meaning that it created $0.3613 on every $100 dollars invested by stockholders. Meta Platforms' management efficiency ratios could be used to measure how well Meta Platforms manages its routine affairs as well as how well it operates its assets and liabilities. As of December 10, 2024, Return On Tangible Assets is expected to decline to 0.14. In addition to that, Return On Capital Employed is expected to decline to 0.18. At present, Meta Platforms' Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 151.5 B, whereas Other Current Assets are forecasted to decline to about 1.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 59.51 | 62.48 | |
| Tangible Book Value Per Share | 51.18 | 53.73 | |
| Enterprise Value Over EBITDA | 15.35 | 14.58 | |
| Price Book Value Ratio | 5.95 | 10.64 | |
| Enterprise Value Multiple | 15.35 | 14.58 | |
| Price Fair Value | 5.95 | 10.64 | |
| Enterprise Value | 849.7 B | 892.2 B |
Understanding the operational decisions made by Meta Platforms management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Dividend Yield 0.0032 | Forward Dividend Yield 0.0032 | Forward Dividend Rate 2 | Beta 1.215 |
Basic technical analysis of Meta Stock
As of the 10th of December, Meta Platforms secures the Downside Deviation of 1.48, risk adjusted performance of 0.1576, and Mean Deviation of 1.15. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Meta Platforms, as well as the relationship between them.Meta Platforms' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Meta Platforms insiders, such as employees or executives, is commonly permitted as long as it does not rely on Meta Platforms' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Meta Platforms insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Mark Zuckerberg over six months ago Disposition of tradable shares by Mark Zuckerberg of Meta Platforms at 513.91 subject to Rule 16b-3 | ||
Mark Zuckerberg over a year ago Sale by Mark Zuckerberg of 110 shares of Meta Platforms | ||
Mark Zuckerberg over a year ago Sale by Mark Zuckerberg of 2345 shares of Meta Platforms | ||
Mark Zuckerberg over a year ago Sale by Mark Zuckerberg of 225 shares of Meta Platforms | ||
Mark Zuckerberg over a year ago Meta Platforms exotic insider transaction detected | ||
Mark Zuckerberg over a year ago Conversion by Mark Zuckerberg of 7175 shares of Meta Platforms | ||
Mark Zuckerberg over a year ago Sale by Mark Zuckerberg of 1065 shares of Meta Platforms | ||
Mark Zuckerberg over a year ago Sale by Mark Zuckerberg of tradable shares of Meta Platforms | ||
Mark Zuckerberg over a year ago Conversion by Mark Zuckerberg of 7175 shares of Meta Platforms |
Meta Platforms' Outstanding Corporate Bonds
Meta Platforms issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Meta Platforms uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Meta bonds can be classified according to their maturity, which is the date when Meta Platforms has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| FDS 29 01 MAR 27 Corp BondUS303075AA30 | View | |
| FDS 345 01 MAR 32 Corp BondUS303075AB13 | View | |
| META 35 15 AUG 27 Corp BondUS30303M8G02 | View | |
| META 385 15 AUG 32 Corp BondUS30303M8H84 | View | |
| META 445 15 AUG 52 Corp BondUS30303M8J41 | View | |
| META 465 15 AUG 62 Corp BondUS30303M8K14 | View |
Understand Meta Platforms' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Meta Platforms' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1576 | |||
| Market Risk Adjusted Performance | 0.6189 | |||
| Mean Deviation | 1.15 | |||
| Semi Deviation | 1.17 | |||
| Downside Deviation | 1.48 | |||
| Coefficient Of Variation | 480.56 | |||
| Standard Deviation | 1.55 | |||
| Variance | 2.41 | |||
| Information Ratio | 0.1129 | |||
| Jensen Alpha | 0.2422 | |||
| Total Risk Alpha | 0.0206 | |||
| Sortino Ratio | 0.1182 | |||
| Treynor Ratio | 0.6089 | |||
| Maximum Drawdown | 8.02 | |||
| Value At Risk | (1.87) | |||
| Potential Upside | 3.22 | |||
| Downside Variance | 2.2 | |||
| Semi Variance | 1.37 | |||
| Expected Short fall | (1.34) | |||
| Skewness | (0.25) | |||
| Kurtosis | 1.22 |
| Risk Adjusted Performance | 0.1576 | |||
| Market Risk Adjusted Performance | 0.6189 | |||
| Mean Deviation | 1.15 | |||
| Semi Deviation | 1.17 | |||
| Downside Deviation | 1.48 | |||
| Coefficient Of Variation | 480.56 | |||
| Standard Deviation | 1.55 | |||
| Variance | 2.41 | |||
| Information Ratio | 0.1129 | |||
| Jensen Alpha | 0.2422 | |||
| Total Risk Alpha | 0.0206 | |||
| Sortino Ratio | 0.1182 | |||
| Treynor Ratio | 0.6089 | |||
| Maximum Drawdown | 8.02 | |||
| Value At Risk | (1.87) | |||
| Potential Upside | 3.22 | |||
| Downside Variance | 2.2 | |||
| Semi Variance | 1.37 | |||
| Expected Short fall | (1.34) | |||
| Skewness | (0.25) | |||
| Kurtosis | 1.22 |
Consider Meta Platforms' intraday indicators
Meta Platforms intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Meta Platforms stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 368624.0 | |||
| Daily Balance Of Power | (0.50) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 616.29 | |||
| Day Typical Price | 615.38 | |||
| Price Action Indicator | (7.81) | |||
| Period Momentum Indicator | (10.20) | |||
| Relative Strength Index | 35.29 |
Meta Platforms Corporate Filings
F4 | 9th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 31st of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 30th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Meta Stock media impact
Far too much social signal, news, headlines, and media speculation about Meta Platforms that are available to investors today. That information is available publicly through Meta media outlets and privately through word of mouth or via Meta internal channels. However, regardless of the origin, that massive amount of Meta data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Meta Platforms news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Meta Platforms relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Meta Platforms' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Meta Platforms alpha.
Meta Platforms Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Meta Platforms can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Meta Platforms Historical Investor Sentiment
Investor biases related to Meta Platforms' public news can be used to forecast risks associated with an investment in Meta. The trend in average sentiment can be used to explain how an investor holding Meta can time the market purely based on public headlines and social activities around Meta Platforms. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Meta Platforms' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Meta Platforms and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Meta Platforms news discussions. The higher the estimate score, the more favorable the investor's outlook on Meta Platforms.
Meta Platforms Corporate Management
| Henry Moniz | Chief Officer | Profile | |
| Andrew Bosworth | Chief Officer | Profile | |
| Christopher Cox | Chief Officer | Profile | |
| Aaron Anderson | Chief Officer | Profile | |
| Marne Levine | Chief Officer | Profile | |
| Jennifer Newstead | Chief Officer | Profile | |
| Jennifer JD | Chief Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Meta Platforms. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. For information on how to trade Meta Stock refer to our How to Trade Meta Stock guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Interactive Media & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Meta Platforms. If investors know Meta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Meta Platforms listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.374 | Dividend Share 1.5 | Earnings Share 21.21 | Revenue Per Share 61.428 | Quarterly Revenue Growth 0.189 |
The market value of Meta Platforms is measured differently than its book value, which is the value of Meta that is recorded on the company's balance sheet. Investors also form their own opinion of Meta Platforms' value that differs from its market value or its book value, called intrinsic value, which is Meta Platforms' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Meta Platforms' market value can be influenced by many factors that don't directly affect Meta Platforms' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Meta Platforms' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Meta Platforms is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meta Platforms' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.