Meta Platforms Inc - Ordinary Shares - Class A

Meta Platforms Inc - Ordinary Shares - Class A

META

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Market Cap$1.42T
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Meta Platforms Inc - Ordinary Shares - Class AMeta Platforms Inc - Ordinary Shares - Class A20.70.38%26%6.30.5

Earnings Call Q2 2026

July 29, 2026 - AI Summary

Revenue & profitability: strong top-line growth, margins pressured by AI spend and one-offs - Q2 total revenue: $60.8B (+28% YoY) ( +27% constant currency ). - Family of Apps ad revenue: $59.4B (+27% YoY; +26% constant currency); ad impressions +14% and avg price per ad +12% (pricing up from performance/macro/currency, partly offset by mix/low-monetizing surface growth). - Operating income (GAAP): $18.8B (down 8% YoY); 31% operating margin. - Main negative driver: legal charges ($2.4B) + severance ($1.2B) tied to May 2026 headcount reduction; excluding these, operating income would have risen ~9% YoY. - Free cash flow (FCF): $0.784B (down materially vs earlier periods), reflecting very heavy CapEx. - Surprising/important: FCF is low despite strong revenue—investors should expect this to be dominated by AI infrastructure build.
AI-driven product & monetization progress (the “why revenue is still strong”) - Recommendations/engagement improvements: LLMs increasingly used for ranking + content understanding + training signal generation; Instagram global time spent up double digits YoY; Facebook video time +9% YoY globally (>10% in US/Canada). - Fresh content + faster discovery: On Instagram Feed, >50% of recommended content is <1 day old ( more than double vs a year ago ); new Reels ranking release noted +15 basis points in Instagram sessions. - Ads performance gains: “Meta Generative Recommender (GEM)” and generative retrieval described as improving ad matching; early pilots reported +1% app event conversions (Instagram) and Q2 improvements of +8.3% ad clicks and +15.7% conversions (Facebook). - Advertiser adoption: Advantage+ solutions up to >$75B annual revenue run rate, and 9M small businesses using at least one AI ad creative tool.
Enterprise monetization + new revenue streams (opportunity expansion) - Business agents: Business agents launched globally on WhatsApp/Messenger; >1M businesses using them weekly; moving onto Instagram. - Agent value proposition: conversations generate learning, enabling overnight summaries + suggested improvements, potentially evolving into “business-in-a-box” style services. - Meta One subscription launched (new tiers expected as demand grows). - API/model monetization: high-intelligence model API launched at a “competitive price”; Muse Spark also expanded via OpenRouter (US developers) with more channels/countries planned. - Key opportunity: Mark emphasized monetizing not just compute but AI + agents + APIs + business tools—aiming for better ROI than selling raw compute.

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$723.69

Target Price by Analysts

30% upsideMeta Platforms Target Price DetailsTarget Price
$566.50

Current Fair Value

1.8% upside

Undervalued by 1.8% based on the discounted cash flow analysis.

Share Statistics

Market cap$1.42 Trillion
Enterprise Value$1.53 Trillion
Dividend Yield$2.10 (0.38%)
Earnings per Share$23.98
Beta1.25
Outstanding Shares2,543,000,000

Return

Return on Equity26.07%ROE
Return on Assets15.13%
Return on Invested Capital22.99%

Valuation & Multiples

P/E Ratio20.69P/E Ratio
PEG-152.41PEG
Price to Sales6.26Price to Sales
Price to Book Ratio5.46Price to Book Ratio
Enterprise Value to Revenue6.71
Enterprise Value to EBIT16.92
Enterprise Value to Net Income22
Total Debt to Enterprise0.09
Debt to Equity0.5Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 29, 2026
EPS Estimate
$7.19
Average shareholder expectation
Revenue Estimate
$60.22 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 28, 2026
EPS Estimate
$6.84
Average shareholder expectation
Revenue Estimate
$63.24 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.1207▲ 48.43%
Total Calls372,111▼ 99.63%
Total Puts417,011▼ 99.34%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %1.73%▼ 63.32%
Total Invested$24.55B▼ 97.38%
Investors Holding1,683▼ 3621.00%

ESG Score

No data

About Facebook Inc

52,534 employees
CEO: Mark Zuckerberg

Founded in 2004, Facebook's mission is to give people the power to build community and bring the world closer together. People use Facebook's apps and technologies to connect with friends and family, find communities and grow businesses.

Relevant Senate Committees

Joint Committee on Taxation

This committee provides critical analysis and revenue estimates for all tax legislation. Its work directly informs and influences corporate tax structures, capital investment credits, and the overall tax burden that Meta, as a large corporation, faces.

Finance

This committee controls taxation, trade, and entitlement spending. Its decisions on corporate tax policy (e.g., corporate tax rates, international tax rules) directly impact Meta's profitability, cash flow, and overall valuation.

Judiciary

This committee oversees the DOJ, antitrust laws, and intellectual property. It is central to potential antitrust actions against Meta, intellectual property disputes (copyright, patents), and debates over content moderation laws like Section 230, directly impacting Meta's business model.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, including the FTC and FCC. It directly impacts 'Big Tech' through privacy regulations, consumer protection, internet governance (e.g., net neutrality), and potential antitrust actions, all highly relevant to Meta.