NASDAQ:META

Meta Platforms, Inc. (META)

550.25
+7.38 (1.36%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
94 watching
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Investor Insights
star iconJun 27, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Meta Platforms, Inc. (META-Q) has shown strong performance in its recent earnings report, beating estimates with earnings per share (EPS) of $8.88 and revenue of $59.89 billion. However, the stock faced volatility, experiencing a significant drop of 11.33% following an announcement by CEO Mark Zuckerberg regarding increased capital expenditures aimed at enhancing AI infrastructure. Despite initially surging by 10% after the favorable earnings report, shares have been trailing downward, confusing investors. Analysts remain cautiously optimistic, forecasting lower earnings and revenues in the upcoming quarter while social media mentions have seen a substantial increase of 319% in the past 24 hours, pointing to heightened interest in the stock.

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Consensus
Mixed
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Valuation
Fair Value
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HOLD
It's cheap on a valuation basis, if you strip out the cash. But Meta faces Tik-Tok and negative biases. Ad spending comes down in a recession, so that makes Meta less attractive. Cash flow generation remains good, so there is value here, but a market hates anything driven by ad spending if there's a recession coming. No one who owns Meta loves it; it's down so much.
Unspecified

It is now very cheap but the headwinds are that they have spent billions on the metaverse. Can they execute on this investment. Investors are concerned over the slowing down of the advertising component. He is not sure whether it is a value trap or an opportunity.

DON'T BUY
Heavily sold off recently with rising interest rates. Change in direction for the company into virtual reality may, or may not pay off. Has since sold shares. Not enough viability on future of company. Is hard to determine whether company will be successful.
PAST TOP PICK

(A Top Pick Aug 24/21, Down 56%) It was hard to do but he sold their position three weeks ago even though it has a good valuation. Sold it because it is hard to reconcile the impact of privacy changes going on around the world. The FTC sees this as the first company to take to court because of its very large size. Also it spent $27 billion on the Metaverse causing an operating loss and it's hard to see where the Metaverse goes from here.

COMMENT
Morgan Stanley just cut their price target It's very painful to hold this. The market is undecided about Zuckerberg's move into the metaverse. You have to believe in his vision to hold this. That's one reason to own it. If you are giant brand like Nike that will advertise in the metaverse, you need to do it in a curated platform so you can control the message. If you don't like that vision, don't own Meta. That said, Meta remains the ad platform for small business. This stock has been slaughtered in share price and weighting. Meta has to prove to him--to show him.
COMMENT
It's been painful to own and is on the chopping block because its core businesses are shrinking as it makes huge investments in business that are unlikely to make money soon. Also, free cash flow generation fell 55% YOy in Q2. It's like a classic value trap now. The free cash flow yield is 4%, but 8% in the past 12 months. He loves the product, but Meta is now a show-me stock, and it hasn't shown him.
DON'T BUY
They're reinventing themselves, investing more in AI and virtual reality and moving away from Facebook. They may or may not succeed. He sold 30% of his shares in June 2021 and sold the rest earlier this year. Did well with that. He's rather buy tech that is more predictable.
DON'T BUY
She sold Amazon in May--her worst trade of the year--around $110, and bought Meta around $190.
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TOP PICK

Facebook's mission is to give people the power to build community and bring the world closer together. The company builds useful and engaging products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices. Social media mentions are up 2% in the past 24h.

WEAK BUY
Guided to weak Q3. Expenses are rising. Daily active users beat expectations. So many ways to monetize. Lots of catalysts. Trades at 11x 2023, 14% EPS growth. Hold your nose and buy.
HOLD
Forming a bit of a bottom. Very inexpensive valuation, about 14x forward earnings. 3.4x price to sales, has really come down. 10-11% EPS growth down from 20%, since they're going through transformation. Still growing user base. Ad revenues per user continue to grow. Watch out for competition. Reports tonight.
HOLD
It reported a weak quarter after the bell today, already down 50% from its peak. No, not a horrendous quarter. It's not worth selling.
PAST TOP PICK
(A Top Pick Jul 22/21, Down 52%) Should do better on the ad side than smaller players. 3B users, great EBITDA margins. Not expensive at 13x earnings, lots of cash on balance sheet. Free cashflow should start growing again next year. When it reports this week, look at advertising trends and if Reels is catching up to TikTok. Buy here, do well over the next couple of years.
COMMENT
They report Wednesday. He expects a beat and forecast cut. Once expectations get low enough for the metaverse, then this stock becomes a buy.
COMMENT
There is a serious overhang with the IOS changes.
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