Menlo Park, California-based Meta Platforms, Inc. (META) is a leading global technology and social media company that builds platforms and products connecting billions of people worldwide. Valued at a market cap of $1.9 trillion, the company owns and operates major applications, including Facebook, Instagram, WhatsApp, and Messenger.
This social media giant has outpaced the broader market over the past 52 weeks. Shares of META have soared 26.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 18.1%. Moreover, on a YTD basis, the stock is up 28.4%, compared to SPX’s 17.2% rise.
Moreover, zooming in further, META has also outperformed the First Trust Dow Jones Internet Index Fund’s (FDN) 17.5% return on a YTD basis. However, it has lagged behind FDN’s 29% surge over the past 52 weeks.
META delivered stronger-than-expected Q3 results after the market closed on Oct. 29. The company's overall revenue grew 26.2% year-over-year to $51.2 billion, surpassing consensus estimates by 3.6%. Strong growth in advertising revenues, along with a promising start from its Superintelligence Labs initiative. aided its results. Moreover, its adjusted EPS came in at $7.25, a notable 9.7% ahead of analyst expectations. However, Meta also disclosed a one-time income tax charge of $15.9 billion, which significantly reduced its diluted EPS. Despite this impact, the company noted that it expects President Trump’s budget bill to lead to a substantial reduction in its U.S. federal tax payments for the remainder of 2025 and beyond.
For the current fiscal year, ending in December, analysts expect META’s EPS to grow 18.2% year over year to $28.21. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 57 analysts covering the stock, the consensus rating is a "Strong Buy,” which is based on 48 “Strong Buy,” three "Moderate Buy," five “Hold,” and one “Strong Sell” rating.
This configuration is slightly more bullish than a month ago, with 47 analysts suggesting a "Strong Buy” rating.
On Oct. 24, Truist Financial Corporation (TFC) analyst Youssef Squali maintained a "Buy" rating on META and raised its price target to $900, indicating a 19.7% potential upside from the current levels.
The mean price target of $872.11 represents a 16% premium from META’s current price levels, while the Street-high price target of $1,086 suggests an ambitious upside potential of 44.5%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- It's 'Going to Be Like a Shockwave' When Tesla's AI Innovations Hit. Should You Buy TSLA Stock First?
- Adobe Systems Bear Put Spread Could Return 233% in this Down Move
- Stocks Muted Before the Open After Mixed Big Tech Earnings, Trump-Xi Summit
- Dear Apple Stock Fans, Mark Your Calendars for October 30
