Meta - AI Stock Analysis

Analysis generated December 22, 2025

Meta Platforms, Inc., formerly known as Facebook, Inc., is a technology conglomerate focusing on social media and virtual reality. Founded in 2004 by Mark Zuckerberg, Meta has grown into a multi-faceted enterprise with a suite of products that include Facebook, Instagram, WhatsApp, Oculus, and many more. Meta aims to create a digital ecosystem where people can connect, share, and experience the digital world in new and immersive ways.

Fundamental Analysis

Meta reported revenue of $51.2 billion for the last quarter, a 7.84% increase from the previous quarter and a 26.25% year-over-year growth. These figures indicate strong growth and an expanding market presence. However, the net income for the last quarter was $2.71 billion, representing an 85.23% decrease from the previous quarter and an 82.73% decrease year-over-year, which raises concerns about profitability.

Despite the net income downturn, the last quarter’s EBITDA was $26.6 billion, showing a 7.03% increase from the previous quarter and a 20.71% increase year-over-year. These numbers suggest that Meta has been effective in generating earnings before interest, taxes, depreciation, and amortization, which is a sign of operational efficiency.

The current P/E ratio is 29.15, which can be considered high and may indicate potential overvaluation. This metric could lead to bearish sentiment among investors.

Moreover, insider selling in recent months could also be a negative signal, raising questions about the confidence levels among the company’s top executives.

Technical Analysis

Today’s stock price is $660.29, reflecting an 11.11% increase compared to a month ago and a 10.33% increase when compared to a year ago, indicating a bullish short-term and long-term trend. The SMA10 is currently at 654.37, slightly up from the previous SMA10 of 652.76, suggesting an upward trend in price movement.

However, the RSI (Relative Strength Index) is at 70.3, usually indicating an overbought condition. This could be a bearish signal, indicating that the stock might be overvalued in the short term and could potentially face a correction.

Alternative Data Analysis

The number of open positions at Meta is 2,334, stable over the last few months, indicating a steady hiring trend. Employee sentiment remains neutral, suggesting neither strong optimism nor pessimism about the company's future.

On the customer acquisition front, Meta’s website has seen an estimated 10.1 billion visitors recently, down by 6% over the past few months, which could indicate a potential loss in customer interest. The number of users downloading Meta’s mobile apps remains stable at 480,000 per day.

Customer engagement metrics show mixed signals. Meta's Instagram followers have increased by 10% to 5.2 million, indicating rising interest. In contrast, Meta's Twitter followers have decreased by 27% to 9.9 million, pointing towards a significant drop in engagement on that platform. Finally, the AltIndex's AI score for Meta is 50, which translates into a ‘Hold’ signal, taking into account the fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

Meta presents a complex investment profile. While the company shows substantial revenue growth and increasing EBITDA, the sharp drop in net income is a concern. The high P/E ratio coupled with insider selling indicates potential overvaluation and might lead to bearish sentiment among some investors.

From a technical standpoint, the bullish trend in stock price and SMA10 suggests continued upward momentum, although the high RSI indicates the stock might be overbought and could face a correction.

Alternative data reveals stable hiring trends but mixed customer engagement signals. While Instagram followers are up, the drop in Twitter followers and website visitors could forewarn about declining customer interest.

Considering the aforementioned factors, a prudent approach might be to hold the stock. Monitoring subsequent earnings reports and market trends could provide a clearer picture of Meta's future performance.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.