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 AnalystHold
Overall Rating6.7/10
Generated at:2026-04-17 17:41:41
Analysis based on real data for Meta Platforms, Inc. (META). Financial reports from 5 periods were used: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Stock price data is as of the report generation date (2026-04-17).
Overview

Meta Platforms, Inc. (META) is a global technology leader with dominant positions in social media and digital advertising through its Family of Apps. The company exhibits strong financial health, exceptional profitability with industry-leading margins, and robust revenue growth. However, it is currently in a high-investment phase focused on AI and the metaverse (Reality Labs), which is tempering near-term earnings growth. The stock appears fairly valued to slightly overvalued at current levels, with limited margin of safety for new investment.

Valuation
4/10
Profitability
8/10
Financial health
8/10
Operation Advice
  • For existing shareholders, the company's fundamental strength justifies maintaining the position (Hold).
  • For new investors, waiting for a more attractive entry point (closer to the $650-$660 range, aligning with the lower end of the base case valuation) would be prudent, given the full valuation and macroeconomic sensitivities that could affect ad spending.

Valuation

P/E TTM
26.98
P/E LYR
30.89
P/B MRQ
7.51
P/S TTM
--
AI Analysis
  • The current stock price of $688.55 falls within the upper end of the Base Case valuation range ($657.72 - $751.68), suggesting the stock is fairly valued to slightly overvalued based on trailing earnings. Valuation multiples (P/E ~27-31, P/B 7.51, P/S 8.70) are at a premium but justified by the company's dominant position, high growth, and exceptional profitability. A rough PEG approximation of 1.23 suggests fair valuation relative to growth.
  • Current Stock Price (as of 2026-04-17 close): $688.55.
  • Forward (dynamic) P/E is 30.89, and the trailing (TTM) P/E is 26.98.
  • P/B ratio is 7.51, reflecting value driven by immense intangible assets.
  • P/S (TTM) ratio is 8.70, standard for high-margin, high-growth platform companies.
  • A rough PEG approximation would be around 1.23 (27/22), suggesting the stock may be fairly valued relative to its growth rate.
  • Conservative P/E Range (25x - 28x): Price Range $587.25 to $657.72.
  • Base Case P/E Range (28x - 32x): Price Range $657.72 to $751.68.
  • Optimistic P/E Range (32x - 35x): Price Range $751.68 to $822.15.
  • The current price of $688.55 falls within the upper end of the Base Case valuation range.
  • Verdict: The stock is fairly valued to slightly overvalued based on trailing earnings.
Valuation trend

Profitability

ROE TTM
30.24%
Net margin
30.08%
Gross margin
82.00%
Total revenue
200.97B
AI Analysis
  • Meta Platforms demonstrates exceptional and highly efficient profitability, with industry-leading margins. FY2025 revenue was $200.97B, representing 22.17% year-over-year growth. The gross margin is consistently above 82%, and the net margin for FY2025 was 30.08%. Net income declined by -3.05% to $60.46B due to significant investments in AI and the metaverse. Return on Equity (ROE-TTM) is 30.24% and Return on Assets (ROA-TTM) is 18.83%, indicating superior capital allocation.
  • Revenue Growth: FY2025 revenue was $200.97B, representing a 22.17% year-over-year increase.
  • Profit Margins: The gross margin is consistently above 82%.
  • Net margin for FY2025 was 30.08%.
  • Net income for FY2025 saw a -3.05% decline to $60.46B.
  • The decline in net income is attributed to significant ongoing investments in AI and the metaverse (Reality Labs), which are currently loss-making.
  • Return on Capital: Return on Equity (ROE-TTM) is 30.24%.
  • Return on Assets (ROA-TTM) is 18.83%.
  • These return figures remain at a level that signifies superior capital allocation and operational efficiency, though down from exceptional peaks of FY2024.
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
  • The company exhibits a strong and healthy financial position. The current ratio of 2.60 indicates robust short-term liquidity. The debt-to-asset ratio of 40.65% shows a moderate, manageable level of leverage for a mature, cash-generative technology company. High profitability allows the company to fund its ambitious investments and share buybacks while maintaining a solid balance sheet.
  • Liquidity: The current ratio of 2.60 indicates robust short-term liquidity, with more than sufficient current assets to cover current liabilities.
  • Solvency: The debt-to-asset ratio of 40.65% shows a moderate level of leverage.
  • This leverage level is manageable for a mature, cash-generative technology company and provides financial flexibility without excessive risk.
  • Profit Retention & Reinvestment: High profitability allows the company to fund its ambitious Reality Labs investments and share buybacks while maintaining a solid balance sheet.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset33.84%33.97%33.82%36.13%40.65%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.982.661.971.982.60