Meta Platforms, Inc. (NASDAQ:META) shares are trading higher Thursday after the company reported better-than-expected fourth-quarter financial results and issued first quarter sales guidance above estimates on Wednesday after the market closed. Multiple firms raised their respective price targets on the stock.
User Growth, Advertising Trends Strengthen
Meta reported earnings per share of $8.88, beating the consensus estimate of $8.16. In addition, the company reported sales of $59.89 billion, beating the consensus estimate of $58.29 billion.
Meta posted continued user and advertising growth across its Family of Apps. Family daily active people averaged 3.58 billion in December 2025, representing a 7% year-over-year increase. Ad impressions delivered across Meta’s platforms rose 18% year-over-year in the fourth quarter, while average price per ad increased 6% compared with the prior year.
The company said total costs and expenses increased 40% year-over-year in the quarter, driven primarily by higher infrastructure-related spending and employee compensation. Capital expenditures, including principal payments on finance leases, totaled $22.14 billion for the quarter, reflecting continued investment in data center capacity and infrastructure.
Meta generated $36.21 billion in cash flow from operating activities during the quarter and $14.08 billion in free cash flow. As of Dec. 31, cash, cash equivalents and marketable securities stood at $81.59 billion, while long-term debt totaled $58.74 billion. Headcount rose 6% year-over-year to 78,865 employees.
Meta sees first-quarter sales of $53.50 billion to $56.50 billion, versus the consensus estimate of $51.31 billion.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Mizuho analyst Lloyd Walmsley maintained an Outperform rating on Meta and raised the price target from $815 to $850.
- Stifel analyst Mark Kelley maintained a Buy rating on Meta and raised the price target from $785 to $820.
- Truist Securities analyst Youssef Squali maintained a Buy rating on Meta and raised the price target from $875 to $900.
- B of A Securities analyst Justin Post maintained a Buy rating on Meta and raised the price target from $810 to $885.
- Rosenblatt analyst Barton Crockett maintained a Buy rating on Meta and raised the price target from $1117 to $1144.
Technical Analysis Of Meta
Meta is currently trading 13.2% above its 20-day simple moving average (SMA) and 7.5% above its 100-day SMA, indicating a strong short-term trend. Over the past 12 months, shares have decreased by 1.15% and are currently positioned closer to their 52-week highs than lows, suggesting a resilient performance despite recent fluctuations.
The RSI is at 59.04, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. This combination suggests that while the stock is not overbought, there is still underlying strength in the current price action.
The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that traders should watch for potential continuation of the upward trend.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Meta, highlighting its strengths and weaknesses compared to the broader market:
- Quality: Strong (Score: 95.11) — The stock demonstrates excellent financial health.
- Value: Weak (Score: 44.75) — Trading at a steep premium relative to peers.
- Momentum: Weak (Score: 24.38) — Stock is underperforming the broader market.
The Verdict: Meta Platforms’ Benzinga Edge signal reveals a mixed picture. While the strong Quality score indicates solid fundamentals, the weak Momentum score suggests that the stock may struggle to maintain its current upward trajectory without broader market support.
Meta Shares Surge Higher
META Price Action: At the time of writing, Meta shares are trading 9.24% higher at $730.50, according to data from Benzinga Pro.
Image via Shutterstock
Recent Comments