Meta Platforms, Inc. (META)
Fair ValueFundamental
72
Price
$642.62
Market Cap
$1.81T
Part 1 · What the company is worth
Overview
Meta owns Facebook, Instagram, WhatsApp and Messenger, apps used by billions of people to connect, share and message, and makes almost all of its money by selling advertising space inside them. It doesn't charge users directly; instead it uses the data generated by their activity to show ads it can target precisely, and charges advertisers for that precision. A much smaller, loss-making division, Reality Labs, builds virtual- and augmented-reality headsets and is Meta's bet on a future computing platform beyond the smartphone.
How it makes money
Meta earns revenue almost entirely from advertisers who pay per ad impression or click, with price set by an auction where advertisers bid for placement in front of the specific audiences Meta's data lets them target. Because the marginal cost of showing one more ad to an existing user is close to zero, revenue growth flows through to profit at a very high rate. Reality Labs, by contrast, sells hardware and software at a steep loss, funded by the advertising business, as an investment in becoming the next computing platform.
Revenue by segment
Advertising sold across Facebook, Instagram, WhatsApp and Messenger — nearly all of Meta's revenue.
Virtual- and augmented-reality hardware, software and content, sold at a large ongoing loss.
Competitive moat
Network effects · WideFacebook, Instagram and WhatsApp are valuable to any one user largely because everyone else is already there — friends, family and businesses — which makes a new social app hard to displace once a critical mass of users has settled on the incumbent. That same scale of users and data lets Meta's ad-targeting outperform smaller rivals, reinforcing why advertisers keep spending there even as new platforms like TikTok compete for attention.
What drives demand
CyclicalAdvertising budgets are one of the first costs companies cut when the economy slows and one of the first they restore in a recovery, so Meta's revenue tends to track the broader advertising and economic cycle more than any product-specific trend. User growth and engagement are comparatively stable; it is advertiser spending, not audience size, that swings with the cycle.
Key risks
- Regulation of data and advertising — The EU's Digital Markets Act, online-safety laws and similar rules elsewhere keep restricting how Meta can collect and use data for ad targeting, with potential fines and forced changes to its ad business.
- Near-total reliance on advertising — Almost all revenue comes from advertising and depends on data signals and mobile operating systems Meta does not control, such as changes Apple has made to privacy settings that limit ad targeting.
- Competition for user attention — Platforms such as TikTok compete directly for the time users spend on their phones, and losing engagement would eventually reduce the audience Meta sells to advertisers.
- Reality Labs losses — Reality Labs lost more than $16 billion in operating income in fiscal 2025 alone, and Meta expects the division to keep losing money for the foreseeable future with no guarantee the bet pays off.
The case for
Buyers argue that the network effect binding billions of users to Facebook, Instagram and WhatsApp is very hard for a new entrant to break, that advertising margins are extremely high once the platform is built, and that heavy AI investment is improving ad targeting and engagement faster than competitors can match.
The case against
Sellers worry that nearly all revenue depends on advertising, one of the first budgets companies cut in a downturn, that regulators in Europe and elsewhere keep restricting the data-driven targeting the ad business relies on, and that Reality Labs has lost over $16 billion in a single year with still no clear sign the bet on a new computing platform will pay off.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 19, 2026, shared with all users
Snapchat competes with Instagram and Messenger for the daily habits of younger users and for the same performance-advertising budgets, with overlapping formats such as Stories and camera-first sharing.
Pinterest sells visual-discovery advertising to the retail, home and fashion advertisers that also buy Instagram placements, competing for the same shopping-intent audience.
Reddit competes for time spent in online communities and discussion — the ground Facebook Groups occupies — and sells the same social-feed advertising inventory to brands.
Alphabet is Meta's largest rival for digital advertising budgets and, through YouTube and YouTube Shorts, competes directly for the same user attention that Facebook, Instagram and Reels monetize.
TikTok is the short-video platform Meta itself names in its 10-K as having reduced engagement with its products, and it sells advertising to the same brands targeting the same young audiences as Instagram Reels.
X competes head-on with Meta's Threads for real-time public conversation and for the brand-advertising budgets that follow news and live events.
Balance Sheet & Liquidity
Revenue
$228.25B
Trailing 12 months (through 6/30/2026)
Net Income
$68.10B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$46.11B
Total Equity
$217.24B
Total Liabilities
$148.78B
Current Ratio
2.23
Interest Coverage
71.48
Debt/EBITDA
1.10
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$736.00
Current Price
$642.62
Margin of Safety
+12.7%
Fair Value Range
$503.96 - $968.05
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
24.21
ROE
27.8%
P/B Ratio
5.42
P/FCF
34.58
Gross Margin
81.7%
ROIC
17.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
17.4%
WACC
10.8%
ROIC − WACC
+6.7 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- EPS CAGR 34.35%
- Price CAGR 20.53%
- ROIC 17.4%
- Gross margin 81.7%
- Debt/equity ratio
- Operating margin 38.1%
- Positive free cash flow
- Current ratio
- Interest coverage
- Debt/EBITDA
- Return on tangible assets
- Low reliance on intangibles
- ROE 29.7%
- Revenue growth 5Y 18.5%
- PEG ratio 1.44
- Earnings quality (operating cash flow / net income) 1.91
- Share dilution -1.5%
- Piotroski F-Score 5/9
Failed (7)
- P/FCF 34.58
- P/B ratio 5.42
- CapEx intensity
- Price below Graham Number
- DCF valuation (Unknown)
- Earnings surprise, average 0.4%
- Net margin trend 29.8% vs 40.0%
Unavailable (1)
- Dividend payout –
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Mark Elliot Zuckerberg | Founder, Chairman & CEO | 41 |
| Ms. Dina Powell McCormick | President & Vice Chairman | 51 |
| Ms. Susan J. S. Li | Chief Financial Officer | 39 |
| Mr. Javier Olivan | Chief Operating Officer | 48 |
| Mr. Andrew Bosworth | Chief Technology Officer | 43 |
| Mr. Christopher K. Cox | Chief Product Officer | 42 |
| Mr. Dana White | Independent Director | 55 |
| Mr. Aaron A. Anderson | Chief Accounting Officer | - |
| Mr. Atish Banerjea | Chief Information Officer | 59 |
| Mr. Henry T. A. Moniz | Chief Compliance Officer | 60 |
Audit Risk
9
Board Risk
10
Compensation Risk
10
Shareholder Rights Risk
10
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-01-29
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-10-22
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-21
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much META moves, measured on its daily prices.
More volatile than 72% of the tracked stocks (90-day volatility).
- Volatility 30d
- 51.9%
- Volatility 90d
- 48.3%
- Beta vs S&P 500 (1y)
- 1.52Correlation 0.46
- Max drawdown (12m)
- -30.1%
- ATR (14d, % of price)
- 4.04%
Earnings reactions
How META moved around its past quarterly results.
Next earnings release
No upcoming release on the calendar.
What usually happens
- Over the last 12 releases the stock moved a median of 8.3% the next day, up or down.
- Next-day moves: up 6, down 6 (out of 12).
- Of the 4 releases that beat estimates, the stock fell the next day after 3.
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Oct 21, 2026 | After the close | 6.80 | 7.40 | +8.8% | -3.0% | -7.0% | n/a |
| Jul 29, 2026 | After the close | 7.36 | 6.18 | -16.0% | -10.2% | -8.0% | +0.5% |
| Apr 29, 2026 | After the close | 6.92 | 7.31 | +5.6% | -7.4% | -8.6% | -8.4% |
| Jan 28, 2026 | After the close | 8.40 | 8.88 | +5.7% | +10.3% | +10.4% | 0.0% |
| Oct 29, 2025 | After the close | 6.82 | 7.25 | +6.2% | -11.0% | -11.3% | -15.4% |
| Jul 30, 2025 | After the close | n/a | n/a | n/a | +11.5% | +11.3% | +11.0% |
| Apr 30, 2025 | After the close | n/a | n/a | n/a | +7.8% | +4.2% | +8.7% |
| Jan 29, 2025 | After the close | n/a | n/a | n/a | +3.0% | +1.6% | +4.2% |
| Oct 30, 2024 | After the close | n/a | n/a | n/a | -1.1% | -4.1% | -3.3% |
| Jul 31, 2024 | After the close | n/a | n/a | n/a | +9.7% | +4.8% | +3.0% |
| Apr 24, 2024 | After the close | n/a | n/a | n/a | -14.6% | -10.6% | -11.0% |
| Feb 1, 2024 | After the close | n/a | n/a | n/a | +16.4% | +20.3% | +19.1% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on META and what the price did next.
- 10/22/2026PositiveMark Zuckerberg says over 10 million people used Meta’s Muse—and demand was so high, he had to get Stripe to raise credit limits
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/22/2026NegativeMeta Platform resta sotto pressione nonostante conti sopra attese
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/21/2026PositiveHeadline no longer in the latest news feed
- +1 day
- -5.8%
- +3 days
- pending
- 10/21/2026NegativeHeadline no longer in the latest news feed
- +1 day
- -5.8%
- +3 days
- pending
- 10/20/2026PositiveHeadline no longer in the latest news feed
- +1 day
- -0.1%
- +3 days
- pending
- 10/20/2026NegativeHeadline no longer in the latest news feed
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 10/17/2026PositiveHeadline no longer in the latest news feed
- +1 day
- -1.0%
- +3 days
- -3.0%
- 10/13/2026PositiveHeadline no longer in the latest news feed
- +1 day
- +2.6%
- +3 days
- 0.0%
- 10/13/2026PositiveHeadline no longer in the latest news feed
- +1 day
- +2.6%
- +3 days
- 0.0%
- 10/12/2026PositiveHeadline no longer in the latest news feed
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for META.
- 1d agoNEUTRALAn $8 billion Treasury break helped bring Meta’s tax rate to 2%. Now it has a week to answer senators about data center tax credits
Meta Platforms is facing scrutiny from senators regarding its tax credits for AI data centers, specifically a research credit claimed on facilities that Meta argues involve real experimentation. This inquiry follows an $8 billion Treasury break that reportedly lowered Meta's effective tax rate to 2%. The company has one week to provide answers. While the tax implications are significant, the news itself is informational and does not yet indicate a direct financial impact or a change in the company's operational performance.
- 2d agoNEUTRALNeed Landing Zone For Capex Estimates: Karoui
Meta Platforms Inc. has committed to approximately $825 billion in future spending on leases and contracts, primarily for computing power and infrastructure essential for artificial intelligence development. This significant capital expenditure, discussed by Pimco and DoubleLine Capital strategists, highlights Meta's aggressive investment strategy in AI. While the scale of the investment signals strong future growth ambitions, the long-term nature and substantial financial commitment introduce uncertainty regarding immediate returns and profitability, making it a key focus for investors assessing the company's financial health and strategic direction.
- 2d agoPOSITIVEMark Zuckerberg says over 10 million people used Meta’s Muse—and demand was so high, he had to get Stripe to raise credit limits
Meta Platforms' new shopping feature, Muse, has seen significant user adoption, with over 10 million people using it. The high demand necessitated an increase in credit limits via Stripe, indicating strong user engagement and potential for transaction-based revenue. Meta envisions Muse as a new revenue stream beyond its traditional advertising model, aiming to capture a percentage of transactions facilitated through the platform. This development suggests a successful diversification effort and a positive outlook for Meta's e-commerce initiatives.
- 2d agoNEGATIVEMeta Platform resta sotto pressione nonostante conti sopra attese
Meta Platforms Inc. experienced a significant downturn, dropping 7.25% on the Nasdaq. Despite reporting quarterly results that surpassed expectations, the company's stock faced downward pressure. The specific reasons for this decline, overshadowing the positive financial report, remain a key concern for investors. This price action suggests that market sentiment is currently outweighing the reported earnings beat, indicating potential underlying issues or investor skepticism regarding future growth prospects or other undisclosed factors.