META Stock Overview
Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide.
Meta Platforms Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$169.49|
|52 Week High||US$384.33|
|52 Week Low||US$154.25|
|1 Month Change||-13.14%|
|3 Month Change||-26.26%|
|1 Year Change||-52.34%|
|3 Year Change||-12.18%|
|5 Year Change||14.19%|
|Change since IPO||343.32%|
Recent News & Updates
Even After a Slump in Expected Earnings, Meta Platforms (NASDAQ:META) may Still be Cheap Relative to Industry Peers
Meta Platforms, Inc. (NASDAQ:META) finally changed its ticker as part of the final transformation step to a company dedicated to the development of the metaverse. While it is exciting to see how the virtual reality project pans out, today, we will focus on the money making capacity of Meta.
Meta Platforms' Shares Offer The Bargain Of The Century
Shares of the company formerly known as Facebook, Meta Platforms are attractive. At ~12.3x times expected 2023 consensus earnings, shares offer the bargain of the century, in our view. We don't think the market is giving Meta enough credit for the sustainable growth behind its diversified advertising business model. Top-line growth ensues as the company builds out the metaverse. Meta hauled in over $39 billion in free cash flow during 2021, and it ended the year with an incredible net cash position of nearly $48 billion, excluding equity investments. The most popular technology gift over the holidays was Meta's virtual reality headset, and clearly, Zuckerberg is on to something, and we're giving him zero credit for the metaverse in our fair value estimate, which stands at more than double the last closing price. Facebook and Instagram may become the "new Internet", and we expect that e-commerce (Shops) and payments technology could offer huge upside potential at Meta, both in and out of the metaverse.
Meta: This Is More Important Than The Metaverse
It will take years before Meta’s investments in the metaverse start to generate meaningful returns. In the meantime, investors should focus on Meta’s core business, which is digital advertising. Despite all the challenges that the company faces, at the current valuation the risk of owning META stock is lower than even a few months ago.
Down Nearly 50% This Year, Is Meta Platforms Stock Now A Buy Or Sell?
META stock is barely positive after three years while TCEHY is up 14% and BIDU is up 28%, even as naysayers claim there’s always something to fear about Chinese stocks. Leadership exodus, advertising headwinds, and regulatory scrutiny are driving bearish sentiment for the Facebook owner. From being the second-most expensive FANG/MANA stock on P/FCF five years ago to the cheapest currently, there may be a limited downside to expect from META stock. META remains a consensus ‘Buy’ with a score of 4.27, lower than AMZN, GOOG, BABA, and BIDU. The latter two were just months ago deemed “uninvestable” by Wall Street. I see parallels with Sea Limited where the gaming company poured money into growing its e-commerce arm, much like META is doing with its metaverse project. Hordes of shareholders, including Cathie Wood's ARK Invest have been selling SE stock in recent months.
|META||US Interactive Media and Services||US Market|
Return vs Industry: META underperformed the US Interactive Media and Services industry which returned -44.8% over the past year.
Return vs Market: META underperformed the US Market which returned -18.4% over the past year.
|META Average Weekly Movement||9.4%|
|Interactive Media and Services Industry Average Movement||11.3%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: META is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: META's weekly volatility (9%) has been stable over the past year.
About the Company
Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment’s products include Facebook, which enables people to share, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices through chat, audio and video calls, and rooms; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately.
Meta Platforms Fundamentals Summary
|META fundamental statistics|
Is META overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|META income statement (TTM)|
|Cost of Revenue||US$23.52b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||13.35|
|Net Profit Margin||31.20%|
How did META perform over the long term?See historical performance and comparison
Is META undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for META?
Other financial metrics that can be useful for relative valuation.
|What is META's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does META's PE Ratio compare to its peers?
|META PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
META Meta Platforms
Price-To-Earnings vs Peers: META is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (31.6x).
Price to Earnings Ratio vs Industry
How does META's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?
Price-To-Earnings vs Industry: META is good value based on its Price-To-Earnings Ratio (12.7x) compared to the US Interactive Media and Services industry average (45.5x)
Price to Earnings Ratio vs Fair Ratio
What is META's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||12.7x|
|Fair PE Ratio||37.2x|
Price-To-Earnings vs Fair Ratio: META is good value based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (37.2x).
Share Price vs Fair Value
What is the Fair Price of META when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: META ($170.16) is trading below our estimate of fair value ($535.8)
Significantly Below Fair Value: META is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: META is good value based on its PEG Ratio (0.9x)
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How is Meta Platforms forecast to perform in the next 1 to 3 years based on estimates from 50 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: META's forecast earnings growth (13.6% per year) is above the savings rate (1.9%).
Earnings vs Market: META's earnings (13.6% per year) are forecast to grow slower than the US market (13.9% per year).
High Growth Earnings: META's earnings are forecast to grow, but not significantly.
Revenue vs Market: META's revenue (12.7% per year) is forecast to grow faster than the US market (8.4% per year).
High Growth Revenue: META's revenue (12.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: META's Return on Equity is forecast to be high in 3 years time (22.2%)
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How has Meta Platforms performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: META has high quality earnings.
Growing Profit Margin: META's current net profit margins (31.2%) are lower than last year (35.7%).
Past Earnings Growth Analysis
Earnings Trend: META's earnings have grown significantly by 22.7% per year over the past 5 years.
Accelerating Growth: META's earnings growth over the past year (10.7%) is below its 5-year average (22.7% per year).
Earnings vs Industry: META earnings growth over the past year (10.7%) exceeded the Interactive Media and Services industry -37.6%.
Return on Equity
High ROE: META's Return on Equity (30.3%) is considered high.
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How is Meta Platforms's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: META's short term assets ($59.3B) exceed its short term liabilities ($21.1B).
Long Term Liabilities: META's short term assets ($59.3B) exceed its long term liabilities ($19.9B).
Debt to Equity History and Analysis
Debt Level: META is debt free.
Reducing Debt: META had no debt 5 years ago.
Debt Coverage: META has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: META has no debt, therefore coverage of interest payments is not a concern.
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What is Meta Platforms's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate META's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate META's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if META's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if META's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as META has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Zuckerberg (37 yo)
Mr. Mark Elliot Zuckerberg founded Meta Platforms, Inc. (formerly known as Facebook, Inc.) in 2004 and its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is respons...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD26.82M) is above average for companies of similar size in the US market ($USD13.44M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: META's management team is seasoned and experienced (5.4 years average tenure).
Experienced Board: META's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: META insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Meta Platforms, Inc.'s employee growth, exchange listings and data sources
- Name: Meta Platforms, Inc.
- Ticker: META
- Exchange: NasdaqGS
- Founded: 2004
- Industry: Interactive Media and Services
- Sector: Media
- Implied Market Cap: US$475.872b
- Shares outstanding: 2.80b
- Website: https://investor.fb.com
Number of Employees
- Meta Platforms, Inc.
- 1601 Willow Road
- Menlo Park
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/27 00:00|
|End of Day Share Price||2022/06/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.