Skip to Content

Meta Platforms Inc Class A META

Morningstar Rating
$332.20 −6.79 (2.00%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

Meta Earnings: Still Impressive but the Shares Remain Fairly Valued

Meta continues its leadership in social media advertising, with third-quarter numbers demonstrating strength on all fronts: user growth, engagement, and monetization with a leaner operation. Reels keeps attracting more advertisers and its impact on Meta’s advertising revenue is now neutral, unlike its negative effect in the past. The impressive results also display Meta’s success in creating better data analytics, campaign planning, and measurement tools using artificial intelligence.

Price vs Fair Value

META is trading at a 3% premium.
Price
$332.21
Fair Value
$161.00
Uncertainty
High
1-Star Price
$287.10
5-Star Price
$659.80
Economic Moat
Jdck
Capital Allocation
Mtcffgdzbt

Bulls Say, Bears Say

Bulls

With more users and usage time than any other social network, Meta provides the largest audience and the most valuable data for social network online advertising.

Bears

Meta is currently a one-trick pony and will be affected severely if online advertising no longer grows or if more advertising dollars shift to others like Google or Snapchat.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if META is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$338.99
Day Range
$330.78339.90
52-Week Range
$108.54342.92
Bid/Ask
$332.30 / $332.50
Market Cap
$853.71 Bil
Volume/Avg
16.0 Mil / 19.7 Mil

Key Statistics

Price/Earnings (Normalized)
25.48
Price/Sales
6.88
Dividend Yield
Dividend Yield (Forward)
Total Yield
2.42%

Company Profile

Meta is the world’s largest online social network, with 3.8 billion family of apps monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. The firm’s ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm’s total revenue, with more than 45% coming from the U.S. and Canada and over 20% from Europe.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Growth
Total Number of Employees
66,185

Competitors

Valuation

Metric
META
VZ
SNAP
Price/Earnings (Normalized)
25.487.8385.02
Price/Book Value
5.981.638.53
Price/Sales
6.881.194.56
Price/Cash Flow
14.774.3384.23
Price/Earnings
META
VZ
SNAP

Financial Strength

Metric
META
VZ
SNAP
Quick Ratio
2.430.504.69
Current Ratio
2.570.684.83
Interest Coverage
6.42−66.42
Quick Ratio
META
VZ
SNAP

Profitability

Metric
META
VZ
SNAP
Return on Assets (Normalized)
20.96%5.57%2.91%
Return on Equity (Normalized)
31.27%22.92%8.84%
Return on Invested Capital (Normalized)
24.95%9.18%1.87%
Return on Assets
META
VZ
SNAP

Internet Content & Information Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
GOOG
Alphabet Inc Class CZpbg$1.7 Tril
GOOGL
Alphabet Inc Class AHbxf$1.7 Tril
TCEHY
Tencent Holdings Ltd ADRLhmw$386.3 Bil
BIDU
Baidu Inc ADRRfsw$41.3 Bil
DASH
DoorDash Inc Ordinary Shares - Class AHlmcyff$37.8 Bil
SPOT
Spotify Technology SATqh$35.6 Bil
PINS
Pinterest Inc Class ABvbjmfp$22.4 Bil
SNAP
Snap Inc Class AXwpb$21.4 Bil
TME
Tencent Music Entertainment Group ADRFsgklv$14.1 Bil