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:2026-06-03 17:39:54
Analysis based on real data for Meta Platforms, Inc. (META). Financial analysis utilizes data from 5 financial report periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Valuation data includes real-time price as of 2026-06-03 close and TTM (Trailing Twelve Months) metrics.
Overview

Meta Platforms, Inc. (META) is a global technology leader in the Internet Content & Information sector, operating the Family of Apps (Facebook, Instagram, WhatsApp, Messenger) and Reality Labs segments. The company demonstrates a strong financial position, exceptional and improving profitability with accelerating growth, and a valuation that, while not cheap, appears justified by its business quality and growth trajectory.

Valuation
7/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Based on fundamental analysis, a Buy recommendation is issued.
  • The analysis suggests the stock is undervalued relative to its growth prospects, with a reasonable near-term target price range of $680 - $720, implying a potential upside of 9% to 16% from the current price of $622.98.
  • Investors should consider the company's strong earnings momentum and solid financials.

Valuation

P/E TTM
21.95
P/E LYR
30.89
P/B MRQ
6.36
P/S TTM
--
AI Analysis
  • The stock's valuation multiples, including a P/E (TTM) of 21.95 and Forward P/E of 30.89, are considered reasonable given the company's high growth rate (over 60% earnings growth in Q1 2026) and exceptional profitability. The elevated P/B ratio is justified by a world-class ROE. The analysis concludes the stock appears undervalued relative to its growth prospects, with a target price range of $680-$720.
  • Current Price: $622.98 (as of 2026-06-03 close).
  • Valuation Multiples: P/E (TTM): 21.95, Forward P/E (Dynamic): 30.89, P/B: 6.36, P/S (TTM): 7.36.
  • The P/E (TTM) of 21.95 is reasonable for a company growing earnings at over 60% in the latest quarter, suggesting the market is pricing in sustained high growth.
  • The higher Forward P/E of 30.89 may reflect expectations for continued strong performance.
  • The P/B of 6.36 is elevated but justified by the world-class ROE of 32.80%.
  • The P/S of 7.36 is high but consistent with a company possessing premium margins and a dominant market position.
  • Considering the stellar Q1 2026 results, strong profitability, and solid financial health, the stock appears to be trading at a valuation that reflects its quality but may not fully price in the recent earnings acceleration.
  • A reasonable near-term target price range based on fundamental strength and growth trajectory is $680 - $720.
  • This implies a potential upside of approximately 9% to 16% from the current price of $622.98.
Valuation trend

Profitability

ROE TTM
32.80%
Net margin
47.54%
Gross margin
81.85%
Total revenue
56.31B
AI Analysis
  • Meta Platforms demonstrates exceptional and improving profitability with industry-leading margins and high returns on capital. The most recent quarter (Q1 2026) shows explosive growth in both revenue (33.08% YoY) and net income (60.86% YoY), indicating successful execution of its strategy and strong advertising demand.
  • Meta Platforms demonstrates exceptional and improving profitability metrics.
  • The company maintains industry-leading margins.
  • The gross margin of 81.85% (Q1 2026) and net margin of 47.54% highlight immense pricing power and operational efficiency.
  • The net margin saw a significant year-over-year increase in Q1 2026.
  • Profitability is further confirmed by high returns on capital.
  • The Return on Equity (ROE-TTM) is 32.80% and Return on Assets (ROA-TTM) is 19.88%, indicating highly effective use of shareholder equity and company assets to generate profits.
  • The most recent quarterly report (Q1 2026) shows explosive growth: Revenue increased 33.08% YoY to $56.31B, and Net Income surged 60.86% YoY to $26.77B.
  • This acceleration from prior quarters suggests successful execution of its efficiency-focused strategy and strong advertising demand.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--18.52%20.01%30.24%32.80%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue42.31B89.83B141.07B200.97B56.31B

Financial health

Debt/Asset
38.35%
Current ratio
2.35
Quick ratio
--
Cash ratio
2.35
AI Analysis
  • The company exhibits a strong and healthy financial position with ample liquidity (current ratio of 2.35) and a moderate, manageable level of leverage (debt-to-asset ratio of 38.35%). This robust balance sheet provides financial flexibility to weather economic cycles and fund growth initiatives like AI and the metaverse.
  • The company exhibits a strong and healthy financial position.
  • Liquidity: The current ratio of 2.35 indicates ample short-term assets to cover short-term liabilities, suggesting strong liquidity management.
  • Solvency: A debt-to-asset ratio of 38.35% reflects a moderate level of leverage.
  • This capital structure provides financial flexibility without excessive risk, allowing for continued investment in growth initiatives like AI and the metaverse.
  • The combination of high liquidity and manageable leverage points to a robust balance sheet capable of weathering economic cycles and funding ambitious R&D projects.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset33.97%33.82%36.13%40.65%38.35%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.661.971.982.602.35