Meta Platforms, Inc.META
NMS • Communication Services
$545.83
P/E
20.29
PEG
0.81
FCF Yield
3.3%
Rev Growth YoY
+28.0% YoY
Gross Margin
81.4%
Health Score
8/10
D/E Ratio
0.32
Confidence
MEDIUM
Business Snapshot
Meta Platforms operates a portfolio of social media and messaging applications that generate revenue primarily through digital advertising, with the company's massive user base across its family of apps serving as the core engine of its advertising business. The company operates in the global digital advertising market, where it maintains a dominant duopoly position alongside a handful of other major platforms, giving it substantial pricing power and network effects that are difficult for challengers to replicate. With a market capitalisation of $1.39 trillion, Meta is a mega-cap company generating TTM revenue of $228.25 billion, placing it among the largest and most financially significant technology companies globally. The defining characteristic that sets Meta apart is its unparalleled global reach and network effects — the scale of its user base creates a self-reinforcing moat where advertisers must follow the audience, and users stay because their networks are already there.
Financial Health
Gross margin stands at 81.4%, slightly down from 81.9% in the prior year, while net margin is a robust 29.8% on a TTM basis, reflecting a highly profitable business model with substantial pricing power. The balance sheet is conservative, with a debt-to-equity ratio of just 0.32x and a current ratio of 2.23x, indicating ample short-term liquidity and no meaningful financial stress...
Risk Assessment
- TECHNICALS — Price of $545.83 sits below the 200-day moving average of $625.08 and the 50-day MA of $594.19, with a death cross signal confirming a bearish technical configuration; RSI and MACD data are not available for this period.
- VALUATION — P/E of 20.29x is above the sector average of 18.2x, representing an 11.5% premium that may compress if growth decelerates.
- EARNINGS QUALITY — Despite beating estimates in 3 of 4 recent quarters, earnings growth declined 13.6% YoY while revenue grew 28.0%, highlighting a disconnect between top-line and bottom-line performance.
- 52-WEEK POSITION — The current price of $545.83 is 31.0% below the 52-week high of $790.80, and sits below the midpoint of the 52-week range, indicating significant downside from recent peaks.
- INSIDER ACTIVITY — 10 insider sells versus 0 buys over the last 90 days signals that company insiders are trimming positions at current levels....
Gross margin stands at 81.4%, slightly down from 81.9% in the prior year, while net margin is a robust 29.8% on a TTM basis, reflecting a highly profitable business model with substantial pricing power. The balance sheet is conservative, with a debt-to-equity ratio of just 0.32x and a current ratio of 2.23x, indicating ample short-term liquidity and no meaningful financial stress. The company generates substantial free cash flow of $46.11 billion, translating to a 3.3% FCF yield, confirming that Meta is a prolific cash generator rather than a cash burner. Return on equity is a strong 29.8%, demonstrating efficient capital deployment and shareholder value creation. Overall, this financial profile leaves Meta with significant capacity for reinvestment into AI infrastructure, share buybacks, and potential dividend growth, with no near-term risk of dilution or financial distress.
- TECHNICALS — Price of $545.83 sits below the 200-day moving average of $625.08 and the 50-day MA of $594.19, with a death cross signal confirming a bearish technical configuration; RSI and MACD data are not available for this period. - VALUATION — P/E of 20.29x is above the sector average of 18.2x, representing an 11.5% premium that may compress if growth decelerates. - EARNINGS QUALITY — Despite beating estimates in 3 of 4 recent quarters, earnings growth declined 13.6% YoY while revenue grew 28.0%, highlighting a disconnect between top-line and bottom-line performance. - 52-WEEK POSITION — The current price of $545.83 is 31.0% below the 52-week high of $790.80, and sits below the midpoint of the 52-week range, indicating significant downside from recent peaks. - INSIDER ACTIVITY — 10 insider sells versus 0 buys over the last 90 days signals that company insiders are trimming positions at current levels.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives