The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 44 | 22.0x | 20.8x | Around median | |
Growth | 81 | 26.2% | 6.1% | Top tier | |
Quality | 89 | 34.4% | 6.6% | Top tier | |
Safety | 89 | — | 0.7x | Top tier | |
Capital Return | 21 | 0.35% | 2.02% | Bottom tier | |
Momentum | 34 | -21.8% | 4.1% | Bottom tier | |
Sentiment | 68 | 41 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Meta Platforms is a global social media giant, owning and operating a suite of the most popular applications such as Facebook, Instagram, WhatsApp, and Threads. The company relies almost entirely on targeted digital advertising to generate its revenue, benefiting from a massive user base of 3.56 billion daily active users. Recently, the company has embarked on a massive strategic shift toward generative artificial intelligence, cloud computing infrastructure development, and custom chip design, in addition to its ongoing investments in the virtual reality and metaverse sector through its Reality Labs division.
The company reported exceptional financial results in the first quarter of 2026, with revenue jumping 33% year-over-year to reach $56.3 billion. This growth was driven by a 19% increase in ad impressions and a 12% rise in the average price per ad. The company also achieved a net income of $26.8 billion, with earnings per share of $10.44, benefiting from a strong operating margin of 41% and an exceptional tax benefit of $8.03 billion that mitigated the burdens of the third quarter of 2025.
In terms of business diversification and segment mix, the core Family of Apps remains the primary driver, while Reality Labs revenue declined by 2% to $402 million due to lower Quest headset sales, despite strong growth in Ray-Ban smart glasses sales. Underscoring its future ambitions, Meta raised its capital expenditure guidance for 2026 to a range of $125 billion to $145 billion, to support artificial intelligence infrastructure and data center development.
Meta's stock trades with support from an analyst consensus recommending a buy, with an average price target of $827.50 and a peak forecast reaching $910. This positive outlook is based on a massive market capitalization exceeding $1.7 trillion and a strong net income of $64.5 billion over the trailing twelve months, indicating that the market is pricing the stock based on its superior ability to generate free cash flow and fund its massive investments in artificial intelligence without harming profit margins.
Figures in the text are as of 2026-07-15; the live price is shown at the top of the page.
Meta raised its capital expenditure guidance for 2026 to range between $125 billion and $145 billion, compared to previous expectations. This increase is primarily due to rising component costs, particularly memory prices, in addition to massive investments in building new data centers such as the $50 billion Louisiana project, to support the compute capacity needed to train advanced artificial intelligence models.
The launch of the MuSpark model and the update to recommendation algorithms led to significant improvements in user engagement. For example, watch time for short videos (Reels) on Instagram increased by 10%, while Facebook recorded its largest quarterly increase in video watch time in four years at over 8%, contributing to a 19% increase in ad impressions.
Yes, the company is experiencing notable success in the smart glasses category, as the number of daily users of Ray-Ban Meta glasses tripled year-over-year. In contrast, Reality Labs division revenue declined by 2% in the first quarter to reach $402 million, impacted by lower sales of Quest virtual reality headsets.
Automated analysis for informational purposes only — not investment advice.
The stock faces pressure from two main fronts: the first is massive lawsuits, where the company faces a $1.4 trillion damage claim in a case related to child safety. The second is intensive selling by management insiders, with 81 sale transactions recorded at a net value of $27.1 million over the past three months without any notable purchases.