NASDAQ:META

Meta Platforms, Inc. (META)

550.25
+7.38 (1.36%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
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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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COMMENT
Not a fan because of the regulatory issues. It's not a long-term hold. She has a small short on it. As the US dollar rises, US earnings are worth less, but she wouldn't worry about this aspect. It's a good trade, as there is always lots of news on the stock, but you have to keep your eye on it.
WAIT
With the recent pullback in price and the regulatory issues still uncertain, she thinks they will need to spend more to resolve these issues. She will watch, but is not a buyer yet. The user base is not growing like it was and the younger users are not going in this direction. She is on the sidelines. (Analysts’ price target is $194.00)
COMMENT
Will unethical practices hurt FB? He owned this before. More regulation will effect media companies like Facebook. But FB is so dominant with so much data. So, this is a risk. He thinks the worst data scores are behind them. Growth numbers are great. You know where your ad dollars are going. This comes down to government pressures and possible regulation. He's very cautious about FB. Perhaps take some shares off the table.
PAST TOP PICK
(A Top Pick Mar 20/18, Down 1%) He still thinks it is amazing. There is still massive growth in front of them.
DON'T BUY
From its top in July, he was looking for a pullback which we've had. FB is still not cheap. His fair market value is $135. It has strong support at $115, which he wouldn't be surprised if it fell back there. All the FAANGs were grossly overvalued. Be careful with FAANGs. He expects another correction.
TOP PICK
The noise here has been extreme in the past year (privacy issues, politics), but their latest revenues are up 37% year over year and the number of monthly users is up, not down. Of course, Facebook needs to do further work by spending money on manpower to be better corporate citizens. This is a great franchise and a multigenerational opportunity to buy this at 20x earnings. Ignore the noise. (Analysts’ price target is $192.91)
PAST TOP PICK
(A Top Pick Apr 02/18, Up 9%) He sold it, fearing government regulations on this space. He regrets it, but still sees many risks. It's a great company but can't stomach all the risk.
BUY
It's gone through one of the biggest cycles from love to hate in a very short time. But social media is not going away, and Facebook commands a huge slice of online advertising. If users leave Facebook, where do they go? Probably to an app that Facebook owns, like Instagram. You see the same ads. FB is heavily oversold and has enormous priving power with advertisers. It dominates.
BUY
This has a moat. It's had a nice run recently, though he didn't expect it to have fallen this far to start with. Given all their spending, 2019 will be flat. Be he sees 15% growth beyond 2019. Trades at a fair 17x. A very high-quality company. You can add to it here. It may get cheaper, but you can buy now.
PAST TOP PICK
(A Top Pick Oct 17/18, Down 18%) It's been a really bad media year for FB. But step back. In a rising rate environment, you want a company with a good balance sheet. FB has $40 billion in cash and no debt; they earn $5 billion net income per quarter and $20 billion annually--in a class of maybe 20 companies in the world. They dominate social media. You're gonna have these tough years. It was up 50% last year and gave back a lot of that this year. Revenue growth is still 40%.
BUY
Why so much volatility? FAANGs are favourites of hedge funds where there's lots of liquid trading. He likes the tech space with huge growth and tailwinds with consumers being these products. Everybody knows FB has been in the news with many hires that impacts their profit margins. But these are temporary issues. They will pass. These are hiccups along the way, but ultimately they will provide great investment returns.
DON'T BUY
Not a new breakdown. Has been breaking for the better part of the last half of the year. There will be multiple support levels it will pause at. If you own it, he doesn't know if he'd continue to hold it. If you're a new buyer, he definitely would not buy it yet.
STRONG BUY
Another issue of privacy has surfaced. He views this as part of the broad evolution of social media and he thinks regulation needs to be better defined. He thinks of the company as an investment opportunity, knowing more regulation is coming, trading at less than 20 times earnings with annual growth of earnings above 20%. He sees this as a buying opportunity.
PAST TOP PICK
(A Top Pick May 14/18, Down 18%) An October $185 put. He was obligated to buy after he took the premium. His net cost was $175. It's $144 now. If you'd bought the stock, you would've bought it $10 higher; but if the stock had run, you would've done better. He was selling puts at that point, because he felt FB had had a good run and would have deceased (though not a much as happened). He'd sell a covered call against it now.
DON'T BUY
Owned it for a long time. Sold it two months ago. Scandals were mischaracterized. very profitable in the near future. Major concern is international government regulation. It is the only company that it is not investing in other verticals. All the other large tech companies are investing in Health Care which is a massive opportunity. This company is just trying to create advertising mouse traps.
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