# Meta Platforms (META.US)

Canonical: https://gigainvestors.com/s/META

Analysis as of: 2026-10-16T07:30:10.302Z. Financial observations: FY2007–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $736.72 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.50×

- FY2018: 0.45×

- FY2019: 0.34×

- FY2020: 0.38×

- FY2021: 0.40×

- FY2022: 0.25×

- FY2023: 0.35×

- FY2024: 0.42×

- FY2025: 0.41×

- LTM to Jun 2026: 0.38×

### moat: pass

- ROIC, median of available years: 46.6%

- ROIC, second-lowest year: 26.0%

- Typical minus recent gross margin: -0.0 pp

- Typical gross margin (annual median): 81.7%

- Recent gross margin (lower of latest and 3-year median): 81.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 22.0%

- ROIC including acquisitions, ten-year median: 34.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: >100%

- FY2018: 86.2%

- FY2019: 47.3%

- FY2020: 49.5%

- FY2021: 54.4%

- FY2022: 25.5%

- FY2023: 36.9%

- FY2024: 46.0%

- FY2025: 29.9%

- LTM to Jun 2026: 26.0%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $176B

- Net income, five-year total: $224B

- Return on incremental invested capital: 33.1%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -6.5 pp

- Working capital / revenue, final three-year average: 6.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.02×

- FY2023: 0.89×

- FY2024: 1.00×

- FY2025: 0.64×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 86.2% vs 36.9%

- Per-share earnings: 3.49 to 23.49 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -2.3%

- Market cap gain: $1.36T

- Cumulative retained earnings: $100B

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -2.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 26.9%

- Per-share value change: $19.99

- Per-share value, starting three-year median: $3.49

- Per-share value, ending three-year median: $23.49

- Buybacks concentrated in cheaper years (correlation): 0.95

- Average buyback yield: 2.4%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $8.6B

- Cumulative net income, 10 years: $320B

- ROIC, first three-year median: 86.2%

- ROIC, last three-year median: 36.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.49

- FY2017: $5.39

- FY2018: $7.57

- FY2019: $6.43

- FY2020: $10.09

- FY2021: $13.77

- FY2022: $8.59

- FY2023: $14.87

- FY2024: $23.86

- FY2025: $23.49

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -15.1%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 17.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.92×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.1%

- FY2017: -9.8%

- FY2018: -7.4%

- FY2019: -13.4%

- FY2020: -6.0%

- FY2021: -11.0%

- FY2022: -14.7%

- FY2023: -13.9%

- FY2024: -10.5%

- FY2025: -15.1%

## Holders

- [David Tepper](https://gigainvestors.com/AM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Clifford Sosin](https://gigainvestors.com/CAS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Glenn Greenberg](https://gigainvestors.com/CCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Pat Dorsey](https://gigainvestors.com/DA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Katz](https://gigainvestors.com/MAVFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Samantha McLemore](https://gigainvestors.com/PTNT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Ruane](https://gigainvestors.com/RC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Vinall](https://gigainvestors.com/RVC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Stuart McLaughlin](https://gigainvestors.com/TFP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Chase Coleman](https://gigainvestors.com/TGM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Jeffrey Ubben](https://gigainvestors.com/VA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Rolfe](https://gigainvestors.com/WP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Abrams](https://gigainvestors.com/abc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Ackman](https://gigainvestors.com/psc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 145% since Oct 2023 · "Meta Platforms Boosts Ad Engagement With AI: More Upside Ahead?" (finance.yahoo.com, Sep 2026) · sales +13.6%

Story as of 2026-10-16T09:59:09.226Z; price observation 2026-10-15.

- 2025-05-01: Meta Shares Jump After Q1 Earnings Beat, Lifts Capex Outlook on AI ([finance.yahoo.com](https://finance.yahoo.com/news/meta-shares-jump-q1-earnings-153346012.html))

- 2025-06-16: Meta stock climbs after announcing Whatsapp advertising plans ([finance.yahoo.com](https://finance.yahoo.com/news/meta-stock-climbs-announcing-whatsapp-134113473.html))

- 2025-10-30: Meta Platforms Plunges 9.5% After Q3 Earnings Miss And Rising 2026 Spend ([nasdaq.com](https://www.nasdaq.com/articles/meta-platforms-plunges-95-after-q3-earnings-miss-and-rising-2026-spend))

- 2026-03-16: Meta’s $27b AI Bet And Record Layoffs Reshape Cost Structure ([finance.yahoo.com](https://finance.yahoo.com/news/meta-27b-ai-bet-record-180925529.html))

- 2026-06-05: Meta weighs big equity raising to finance AI infrastructure, FT reports ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/meta-weighs-big-equity-raising-182445811.html))

- 2026-09-22: Meta's Muse AI teams up with Shopify, lifting its stock ([finance.yahoo.com](https://finance.yahoo.com/video/metas-muse-ai-teams-up-with-shopify-lifting-its-stock-195026601.html))

### Sales · FY2025–2026

sales +13.6%; source https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm; observed 2026-01-29.

- FY2017: $41B 

- FY2018: $56B 

- FY2019: $71B 

- FY2020: $86B 

- FY2021: $118B 

- FY2022: $117B 

- FY2023: $135B 

- FY2024: $165B 

- FY2025: $201B 

- FY2026: $228B 

### Gross margin · FY2026

gross margin 81.7%; source https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm; observed 2026-01-29.

- FY2017: 86.6% 

- FY2018: 83.2% 

- FY2019: 81.9% 

- FY2020: 80.6% 

- FY2021: 80.8% 

- FY2022: 78.3% 

- FY2023: 80.8% 

- FY2024: 81.7% 

- FY2025: 82.0% 

- FY2026: 81.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet content & information; annual sales are USD 201 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm (filed 2026-01-29); FY2025: revenue 200966000000; grossProfit 164791000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); META.US: Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses in the United States, Canada, Europe, Asia-Pacific, and internationally. It operates through two segments, Family of Apps (FoA) and Reality Labs (RL). The FoA segment offers Facebook, which enables people to build community through feed, reels, stories, groups, marketplace, and other; Instagram that brings people closer through Instagram feed, stories, reels, live, and messaging; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; Meta AI, an assistant that's available across apps, as a stand-alone app, on AI glasses, and on the web; Threads, an application for text-based updates and public conversations; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact. The RL segment provides virtual and augmented reality products, including consumer hardware, software, and content that help people feel connected, as well as Meta Quest devices that enable social experiences across gaming, fitness, entertainment, and more. The segment also includes wearables such as AI glasses like Ray Ban Meta and Oakley Meta glasses; and the Meta Ray Ban Display, which combines AI glasses with an integrated lens display and the Meta Neural Band, a wrist worn device using electromyography that lets people control their AI glasses through neuromuscular signals. Meta Platforms, Inc. has a collaboration with Microsoft Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., Broadcom Inc., and OpenAI, L.L.C. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California.

### Why customers stay

Margins ranged from 80.8% to 82% during 2023–25; it earns 46.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2023: grossProfit / revenue = 80.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2024: grossProfit / revenue = 81.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm (filed 2026-01-29); FY2025: grossProfit / revenue = 82%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); 10-year return on capital observations [[2017,1.079000157662961],[2018,0.8615497905938705],[2019,0.47264145161287024],[2020,0.49532074293562606],[2021,0.5440121069051624],[2022,0.25532136815558276],[2023,0.3693507561979757],[2024,0.4595712182894643],[2025,0.2986236071026321],[2026,0.26025598842038816]]; median 0.46610633495116727. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 75.7% of cash earnings on expansion; earns 33.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2016: growth capex 2149000000; upkeep 2342000000; owner earnings 10217000000. Growth capex / owner earnings = 0.2103357149848292.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2017: growth capex 3708000000; upkeep 3025000000; owner earnings 15934000000. Growth capex / owner earnings = 0.23270992845487637.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2018: growth capex 5241378267.44416; upkeep 8673621732.55584; owner earnings 17753378267.44416. Growth capex / owner earnings = 0.29523272632880865.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2019: growth capex 6065636787.153595; upkeep 9036363212.846405; owner earnings 15189636787.153595. Growth capex / owner earnings = 0.3993273092799372.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2020: growth capex 7216957289.092089; upkeep 7898042710.907911; owner earnings 28109957289.092087. Growth capex / owner earnings = 0.25674024385275707.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2021: growth capex 10600000000; upkeep 7967000000; owner earnings 39370000000. Growth capex / owner earnings = 0.269240538481077.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2022: growth capex 0; upkeep 31431000000; owner earnings 455000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2023: growth capex 12700538062.598007; upkeep 14565461937.401993; owner earnings 34914538062.59801. Growth capex / owner earnings = 0.3637607359956277.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2024: growth capex 21704013169.537724; upkeep 15551986830.462276; owner earnings 62306013169.53772. Growth capex / owner earnings = 0.3483454014379004.

- Source: https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm (filed 2026-01-29); FY2025: growth capex 29216181632.44902; upkeep 40474818367.55098; owner earnings 38599181632.44902. Growth capex / owner earnings = 0.7569119446793652.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); Incremental return on capital 0.3312770170143169, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,2337000000],[2020,0],[2021,0],[2022,0],[2023,0],[2024,5072000000],[2025,5324000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm (filed 2026-01-29); FY2025: cash repurchases 26248000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); META.US SharesStats.PercentInsiders = 0.148 percentage points; cache date 2026-10-16.

### What could break it

"We generate substantially all of our revenue from advertising." (SEC filing, Jan 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm (filed 2026-01-29); We generate substantially all of our revenue from advertising.

### What the price says

The price is 9.4 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); Closing price 736.72 USD; reporting-to-trading FX 1; FY2025 annual sales per share 78.07536907536908; price multiple 9.43601046943264. FY2025 cash earnings/share 14.995797060003504. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $130.99 per share

- 2016-11: $118.42 per share

- 2016-12: $115.05 per share

- 2017-01: $130.32 per share

- 2017-02: $135.54 per share

- 2017-03: $142.05 per share

- 2017-04: $150.25 per share

- 2017-05: $151.46 per share

- 2017-06: $150.98 per share

- 2017-07: $169.25 per share

- 2017-08: $171.97 per share

- 2017-09: $170.87 per share

- 2017-10: $180.06 per share

- 2017-11: $177.18 per share

- 2017-12: $176.46 per share

- 2018-01: $186.89 per share

- 2018-02: $178.32 per share

- 2018-03: $159.79 per share

- 2018-04: $172.00 per share

- 2018-05: $191.78 per share

- 2018-06: $194.32 per share

- 2018-07: $172.58 per share

- 2018-08: $175.73 per share

- 2018-09: $164.46 per share

- 2018-10: $151.79 per share

- 2018-11: $140.61 per share

- 2018-12: $131.09 per share

- 2019-01: $166.69 per share

- 2019-02: $161.45 per share

- 2019-03: $166.69 per share

- 2019-04: $193.40 per share

- 2019-05: $177.47 per share

- 2019-06: $193.00 per share

- 2019-07: $194.23 per share

- 2019-08: $185.67 per share

- 2019-09: $178.08 per share

- 2019-10: $191.65 per share

- 2019-11: $201.64 per share

- 2019-12: $205.25 per share

- 2020-01: $201.91 per share

- 2020-02: $192.47 per share

- 2020-03: $166.80 per share

- 2020-04: $204.71 per share

- 2020-05: $225.09 per share

- 2020-06: $227.07 per share

- 2020-07: $253.67 per share

- 2020-08: $293.20 per share

- 2020-09: $261.90 per share

- 2020-10: $263.11 per share

- 2020-11: $276.97 per share

- 2020-12: $273.16 per share

- 2021-01: $258.33 per share

- 2021-02: $257.62 per share

- 2021-03: $294.53 per share

- 2021-04: $325.08 per share

- 2021-05: $328.73 per share

- 2021-06: $347.71 per share

- 2021-07: $356.30 per share

- 2021-08: $379.38 per share

- 2021-09: $339.39 per share

- 2021-10: $323.57 per share

- 2021-11: $324.46 per share

- 2021-12: $336.35 per share

- 2022-01: $313.26 per share

- 2022-02: $211.03 per share

- 2022-03: $222.36 per share

- 2022-04: $200.47 per share

- 2022-05: $193.64 per share

- 2022-06: $161.25 per share

- 2022-07: $159.10 per share

- 2022-08: $162.93 per share

- 2022-09: $135.68 per share

- 2022-10: $93.16 per share

- 2022-11: $118.10 per share

- 2022-12: $120.34 per share

- 2023-01: $148.97 per share

- 2023-02: $174.94 per share

- 2023-03: $211.94 per share

- 2023-04: $240.32 per share

- 2023-05: $264.72 per share

- 2023-06: $286.98 per share

- 2023-07: $318.60 per share

- 2023-08: $295.89 per share

- 2023-09: $300.21 per share

- 2023-10: $301.27 per share

- 2023-11: $327.15 per share

- 2023-12: $353.96 per share

- 2024-01: $390.14 per share

- 2024-02: $490.13 per share

- 2024-03: $485.58 per share

- 2024-04: $430.17 per share

- 2024-05: $466.83 per share

- 2024-06: $504.22 per share

- 2024-07: $474.83 per share

- 2024-08: $521.31 per share

- 2024-09: $572.44 per share

- 2024-10: $567.58 per share

- 2024-11: $574.32 per share

- 2024-12: $585.51 per share

- 2025-01: $689.18 per share

- 2025-02: $668.20 per share

- 2025-03: $576.36 per share

- 2025-04: $549.00 per share

- 2025-05: $647.49 per share

- 2025-06: $738.09 per share

- 2025-07: $773.44 per share

- 2025-08: $738.70 per share

- 2025-09: $734.38 per share

- 2025-10: $648.35 per share

- 2025-11: $647.95 per share

- 2025-12: $660.09 per share

- 2026-01: $716.50 per share

- 2026-02: $648.18 per share

- 2026-03: $572.13 per share

- 2026-04: $611.91 per share

- 2026-05: $632.51 per share

- 2026-06: $563.29 per share

- 2026-07: $556.71 per share

- 2026-08: $572.34 per share

- 2026-09: $725.18 per share

- 2026-10: $762.50 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:55.210Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm); period 2025-12-31, filed 2026-01-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.