Meta Platforms, Inc.(META) - Stock detail

Meta Platforms, Inc.

US
META
Meta Platforms, Inc.(Listing date: 05/18/2012)

Meta Platforms, Inc. was incorporated in Delaware in July 2004 and is the world's largest social networking website. The company provides various tools that enable users to connect, share, explore, and communicate with each other on mobile devices and computers.

AI Value AnalystBuy
Overall Rating8/10
Generated at:2026-03-04 16:35:03
Analysis based on 5 financial reports from 2024-12-31 to 2025-12-31. Data includes quarterly reports from 2025-03-31, 2025-06-30, 2025-09-30, and annual reports from 2024-12-31 and 2025-12-31. Stock price data as of 2026-03-05. Data completeness: Comprehensive financial metrics including income statements, balance sheets, and valuation metrics.
Overview

Meta Platforms demonstrates strong fundamental conditions with robust financial health, high profitability metrics, and premium but justified valuation. The company operates through Family of Apps and Reality Labs segments, showing consistent revenue growth and effective capital utilization despite some margin compression due to strategic investments.

Valuation
7/10
Profitability
8/10
Financial health
9/10
Operation Advice
  • Buy at current price of $667.73 with short-term target of $715-$720 and medium-term target of $750-$775.
  • Maintain stop-loss at ~$620.
  • Monitor Q1 2026 earnings for net income rebound confirmation.

Valuation

P/E TTM
26.98
P/E LYR
30.89
P/B MRQ
7.51
P/S TTM
--
AI Analysis
  • Meta trades at premium valuations with dynamic PE of 30.89 and TTM PE of 26.98, slightly above sector median but justified by growth prospects. Base case fair value is $657.72 with upside to $775+ on growth catalysts.
  • Dynamic PE of 30.89 and TTM PE of 26.98 are above historical averages but justified by growth prospects
  • Sector median PE ~25 suggests slight premium
  • PB Ratio of 7.51 reflects high intangible asset valuation but aligns with tech sector norms
  • TTM PS of 8.38 indicates market confidence in revenue scalability
  • Base Case valuation using TTM EPS $23.49 and sector-adjusted PE 28 yields $657.72
  • Growth Case projected EPS growth (10% conservative) yields $25.84 EPS × PE 30 → $775.20
  • Recent trading range ($600–$740) and 60-day low of $600.00 provide downside cushion
Valuation trend

Profitability

ROE TTM
30.24%
Net margin
30.08%
Gross margin
82.00%
Total revenue
200.97B
AI Analysis
  • Meta exhibits high profitability with gross margins around 82% and strong ROE/ROA metrics, though net margin compressed to 30.08% due to increased investments in Reality Labs and AI.
  • Gross margin remains elevated at ~82%, reflecting pricing power and cost efficiency
  • Net margin compressed to 30.08% in FY2025 (from 37.91% in FY2024) due to increased investments in RL and AI
  • ROE of 30.24% and ROA of 18.83% (TTM) outperform industry averages, indicating effective capital utilization
  • Diluted EPS declined to $23.49 in FY2025 (from $23.86 in FY2024)
  • Quarterly data shows recovery potential with Q2 2025 showing +35.41% YoY net income growth
  • Annual revenue reached $200.97B, highlighting scale and market position
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--9.05%18.52%20.01%30.24%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue164.50B42.31B89.83B141.07B200.97B

Financial health

Debt/Asset
40.65%
Current ratio
2.60
Quick ratio
--
Cash ratio
2.60
AI Analysis
  • Meta demonstrates strong financial health with good liquidity, moderate leverage, and consistent revenue growth, supporting operational resilience.
  • Current ratio of 2.60 indicates sufficient short-term asset coverage for liabilities
  • Debt-to-equity (implied by 40.65% liability ratio) is moderate, supporting growth without excessive risk
  • Consistent YoY revenue growth across quarters (16.07% to 22.17% in recent reports) underscores operational resilience
  • Despite a -3.05% YoY decline in net income for FY2025, annual revenue reached $200.97B
  • Strong financial health supports premium valuation and growth investments
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset33.84%33.97%33.82%36.13%40.65%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.982.661.971.982.60