Meta Platforms, Inc.

Meta continues to pair durable ad monetization with improving Reels and messaging economics, while AI investment and Reality Labs spend remain the main offsets.

Live company workspace

This page is the current view. It combines the latest price context, filing status, reported fundamentals, refreshed normalized statements, and the current model output. Published actions and ratings stay here as reference, while the report page preserves the point-in-time note.

Latest analyst action: Upgraded

Latest published rating: Buy

Open published report

Current model signal

Hold

Confidence: Low

Implied return: +2.5 upside

Fair value $553 vs. current $540 (+2.5 upside).

Model vs published view

Current model signal differs from the latest published analyst rating.

Ticker

Normalized financial summary

Curated normalized annual basis: FY2023 | FY2024 | FY2025

Revenue (Latest FY)

FY2025 | +22.2% vs prior FY

$201.0B

Operating Margin

-80 bps vs prior FY

41.4%

FCF (Latest FY)

22.9% margin | FY2025

$46.1B

Net Cash / (Debt)

Net cash positive

$22.9B

Key ratios

EV / NTM EBITDA

Sector 13.7x

18.2x

P / NTM EPS

Sector 21.5x

24.6x

ROIC

Sector 12.8%

29.4%

Rule of 40

Strong

59%

Base-case assumptions

These are AnalystScope's current base-case valuation inputs. The note under each number explains why that level is considered reasonable for this company; the sensitivity line shows how much fair value moves if that judgment is wrong.

Revenue CAGR (5Y)

12.0%

±1.0% => ±$18/sh

Why this level: This is AnalystScope's base-case growth assumption, not a guarantee. It sits below the latest normalized FY revenue pace (2025.0%), so the model does not extend current strength too far into the outer years. Current company context: Ad monetization remains supported by improving recommendation systems and Reels engagement.

Terminal Growth

3.0%

±0.5% => ±$14/sh

Why this level: This is AnalystScope's mature long-run growth assumption, not a perpetual hypergrowth claim. At 3.0%, it sits well below the 12.0% five-year revenue CAGR, so the model steps down from the explicit forecast period to a steadier long-run pace. For Meta Platforms, Inc., that means a durable franchise can keep compounding after year five without assuming today's faster growth profile lasts indefinitely.

WACC

8.8%

±0.5% => ∓$19/sh

Why this level: This is AnalystScope's base-case cost-of-capital judgment, not a precise CAPM output. It reflects the current rates backdrop, equity risk premium, and the company's balance-sheet posture. Net cash positive

Operating Margin (Year 5)

42.0%

±100 bps => ±$10/sh

Why this level: This is AnalystScope's base-case margin view, not a promise of straight-line expansion. It keeps year-five margins close to today's normalized operating margin (41.4%), which implies the current margin structure is broadly durable. Margin input normalizes Reality Labs investment intensity and quarter-specific AI infrastructure costs.

How to read the assumptions and sensitivities

These are base-case assumptions used to estimate fair value. They are reasonable model inputs, not reported facts.

Each sensitivity line shows the estimated fair-value-per-share change from a small move in that one input while the other inputs stay fixed.

bps means basis points. 100 bps equals 1.00 percentage point.

WACC sensitivity moves in the opposite direction because a higher discount rate lowers present value, while a lower discount rate raises it.

Scenario workbench

Analyst workbench

This is a local edited scenario, not the published AnalystScope base case or report view. It keeps the published base case as the anchor, applies bounded changes to the four core valuation inputs, and updates the fair-value estimate immediately.

Base-case rationale remains in the assumptions section above. This first slice uses the published sensitivities to estimate how the edited scenario changes fair value while the cross-check methods remain the published reference point.

Editable assumptions

Adjust the inputs within a reasonable range. Edits stay local to this browser session.

Revenue CAGR (5Y)

Published base case: 12.0% | ±1.0% => ±$18/sh

Range: 6.0% to 18.0%

Terminal Growth

Published base case: 3.0% | ±0.5% => ±$14/sh

Range: 1.5% to 4.5%

WACC

Published base case: 8.8% | ±0.5% => ∓$19/sh

Range: 6.8% to 10.8%

Operating Margin (Year 5)

Published base case: 42.0% | ±100 bps => ±$10/sh

Range: 34.0% to 50.0%

Published base case

Fair value

$553

Upside / Downside

+2.5 upside

Model signal

Hold

Edited scenario

Fair value

$553

$0/sh vs published base case

Upside / Downside

+2.4 upside

+0.0 pts vs published base case

Model signal

Hold

Unchanged versus the published base case.

Normalized financial statements

Curated normalized annual statements in USD across FY2023 | FY2024 | FY2025.

Income statement

Line item	FY2023	FY2024	FY2025
Revenue	$134.9B	$164.5B	$201.0B
Gross Profit	$108.2B	$133.4B	$164.0B
Operating Income	$46.8B	$69.4B	$83.2B
EBITDA	$58.0B	$84.9B	$101.9B
Net Income	$39.1B	$62.3B	$60.5B

Balance sheet

Line item	FY2023	FY2024	FY2025
Cash & Investments	$65.4B	$77.8B	$81.6B
Total Debt	$18.4B	$28.8B	$58.7B
Net Cash / (Debt)	$47.0B	$49.0B	$22.9B
Total Assets	$229.6B	$276.1B	$366.0B
Total Liabilities	$76.4B	$93.5B	$148.8B
Shareholders' Equity	$153.2B	$182.6B	$217.2B

Cash flow

Line item	FY2023	FY2024	FY2025
Operating Cash Flow	$71.1B	$91.3B	$115.8B
Depreciation & Amortization	$11.2B	$15.5B	$18.7B
Capital Expenditures	($27.0B)	($37.2B)	($69.7B)
Free Cash Flow	$44.1B	$54.1B	$46.1B

Model inputs vs reported fundamentals

Side-by-side view of the live reported fundamentals versus the latest normalized annual inputs still used in the current public analysis model.

Reported fundamentals source

SEC XBRL companyfacts API

Live SEC companyfacts currently cover revenue, operating margin, free cash flow, and net cash / net debt. Reporting period end 2025-12-31.

Last refreshed 4 Apr 2026, 03:58 UTC. Stale after 4 Apr 2026, 15:58 UTC.

Normalization impact on the thesis

For Meta, normalization reduces advertising-cycle and investment noise, which keeps the thesis anchored to durable cash generation rather than quarter-to-quarter margin swings.

Statement basis diagnostics

Latest normalized basis FY2025 versus the current live reported snapshot where available.

Income statement

Revenue

FY2025 $201.0B vs reported TTM $201.0B (+0.0%)

Operating margin

FY2025 41.4% vs reported 41.4% (-0.0 pts)

Cash flow

Free cash flow

FY2025 $46.1B vs reported TTM $46.1B (-0.0%)

FCF margin

FY2025 22.9% vs reported 22.9% (-0.0 pts)

Balance sheet

Net cash / (debt)

FY2025 Net cash $22.9B vs reported Net debt $22.9B

Metric	Reported	Status	Model input	Status
Revenue (TTM)	$201.0B	Live reported	$201.0B +22.2% YoY Adjustment: Model revenue smooths advertising seasonality and changes in ad load measurement.	Model / normalized
Operating Margin	41.4%	Live reported	41.4% -80 bps YoY Adjustment: Margin input normalizes Reality Labs investment intensity and quarter-specific AI infrastructure costs.	Model / normalized
FCF (TTM)	$46.1B	Live reported	$46.1B 22.9% margin Adjustment: FCF input cleans up capex timing and working-capital noise around infrastructure scaling.	Model / normalized
Net Cash / (Debt)	($22.9B)	Live reported	$22.9B Net cash positive Adjustment: Balance-sheet treatment keeps a conservative net-cash view after reserves and lease obligations.	Model / normalized

Normalization review

For Meta, normalization reduces advertising-cycle and investment noise, which keeps the thesis anchored to durable cash generation rather than quarter-to-quarter margin swings.

Rows are sorted by largest comparable drift first.

Metric	Latest normalized basis	Latest live reported	Delta / variance	Materiality	Normalization rationale
Net Cash / (Debt)	$22.9B FY2025 normalized	($22.9B) Live reported balance sheet	+$45.8B / +22.8% of revenue	High drift	Balance-sheet treatment keeps a conservative net-cash view after reserves and lease obligations.
Operating Margin	41.4% FY2025 normalized	41.4% Live reported margin	-0.0 pts	In band	Margin input normalizes Reality Labs investment intensity and quarter-specific AI infrastructure costs.
Revenue (TTM)	$201.0B FY2025 normalized	$201.0B Live reported TTM	+$0.0 / +0.0%	In band	Model revenue smooths advertising seasonality and changes in ad load measurement.
FCF (TTM)	$46.1B FY2025 normalized	$46.1B Live reported TTM	+$0.0 / +0.0%	In band	FCF input cleans up capex timing and working-capital noise around infrastructure scaling.

Ratios + trends

Normalized annual income-statement, cash-flow, and balance-sheet metrics, plus cross-statement quality relationships with compact prior-FY direction cues, derived from the curated statement backbone.

Basis: FY2023 | FY2024 | FY2025. Live reported fundamentals remain available in the reconciliation section.

Operating and cash-flow trends

Normalized statements

Revenue growth (1Y)

+22.2%

Gross margin

81.6%

Operating margin

41.4%

Operating margin change vs prior FY

-0.8 pts

EBITDA margin

50.7%

EBITDA margin change vs prior FY

-0.9 pts

Operating income growth (1Y)

+19.9%

Net margin

30.1%

FCF margin

22.9%

FCF margin change vs prior FY

-10.0 pts

FCF growth (1Y)

-14.8%

Balance sheet quality

Normalized statements

Cash & investments

$81.6B

Total debt

$58.7B

Net cash / (debt)

Net cash $22.9B

Net cash / (debt) as % of revenue

Net cash 11.4% of revenue

Liabilities / assets

Weakening

vs FY2024 (+6.8 pts)

40.7%

Cross-statement quality

Normalized statements

Gross-to-operating spread

40.2 pts

Operating cash flow / net income

Improving

vs FY2024 (+0.4x)

1.9x

Operating cash flow / EBITDA

Stable

vs FY2024 (+0.1x)

1.1x

Free cash flow / net income

Stable

vs FY2024 (-0.1x)

0.8x

CapEx as % of revenue

Weakening

vs FY2024 (+12.1 pts)

34.7%

CapEx as % of operating cash flow

Weakening

vs FY2024 (+19.4 pts)

60.2%

CapEx / D&A

Weakening

vs FY2024 (+1.3x)

3.7x

Cash & investments / total debt

Weakening

vs FY2024 (-1.3x)

1.4x

Shareholders' equity as % of revenue

108.1%

Asset turnover

Stable

vs FY2024 (-0.0x)

0.5x

Financial diagnostics

Compact normalized-basis diagnostics for analyst triage.

Drift focus

High drift

Balance sheet | Net Cash / (Debt) | +$45.8B / +22.8% of revenue

Revenue momentum

Stable

+22.2% latest 1Y growth

vs +21.9% prior 1Y

Operating margin trend

Stable

41.4% latest margin

-80 bps vs prior FY

FCF margin trend

Weakening

22.9% latest FCF margin

-995 bps vs prior FY

Balance-sheet posture

Weakening

Net cash 11.4% of revenue

vs Net cash 29.8% of revenue prior FY

Thesis scorecard

Qualitative scorecard of the main thesis dimensions behind the current investment view.

Growth

Strong

Core ad demand, Reels monetization, and messaging tools still support healthy growth.

Profitability

Strong

Core platform economics remain very strong despite heavy AI and Reality Labs investment.

Balance sheet

Strong

Net cash and cash generation provide flexibility to sustain the current investment cycle.

Valuation

Moderate

The setup still offers upside, but quality and AI optionality are no longer inexpensive.

Execution / Resilience

Moderate

Execution remains strong, though regulatory and platform-policy risk still matter.

Key drivers

Ad monetization remains supported by improving recommendation systems and Reels engagement.

Messaging and broader AI tools continue to expand monetization opportunities beyond the core feed.

Very strong cash generation supports a sustained AI capex cycle without stressing the balance sheet.

Key risks

AI and Reality Labs spending could stay elevated for longer than monetization supports.

Digital advertising demand remains sensitive to macro and regulatory shocks.

Policy or antitrust pressure could limit monetization flexibility across the platform set.

What would change our view

Faster ad conversion from AI products would improve conviction in the current upside case.

A more durable rise in Reality Labs losses without monetization progress would pressure the view.

Evidence of softer engagement monetization would likely reduce confidence in the base case.

Near-term catalysts

Ad pricing and engagement trends remain the nearest catalyst for estimate revisions.

Margin commentary around AI infrastructure and Reality Labs spend can move fair value quickly.

Updates on business messaging and AI agent monetization could improve sentiment on incremental upside.

What we are watching

Whether AI-driven ad efficiency gains remain durable as the investment cycle matures.

How quickly messaging and generative AI tools translate into meaningful revenue contributions.

Any change in regulatory posture that could affect platform economics or capital intensity.

Coverage metadata

Last updated

Mar 20, 2026

Coverage status

Active coverage

Latest analyst action

Upgraded

Mar 20, 2026

Latest published rating

Buy

Mar 20, 2026

Analyst note

Current work is focused on AI monetization durability, ad efficiency gains, and the payback period on infrastructure spend.

Model vs published view

Current model signal differs from the latest published analyst rating.

Current price source

AnalystScope curated current price

Live market-price fetch unavailable. Using the curated current price field.

Reported fundamentals source

SEC XBRL companyfacts API

Live SEC companyfacts currently cover revenue, operating margin, free cash flow, and net cash / net debt. Reporting period end 2025-12-31.

Last refreshed 4 Apr 2026, 03:58 UTC. Stale after 4 Apr 2026, 15:58 UTC.

Latest filing source

SEC EDGAR submissions API

PX14A6G filed Mar 30, 2026

Last refreshed Apr 3, 2026, 11:28 PM UTC. Stale after Apr 4, 2026, 11:28 AM UTC.

Open filing source

Coverage timeline

Timeline events show published analyst actions and ratings. The current model signal is shown separately above.

Mar 20, 2026

UpgradedBuy

Upgraded to Buy as ad efficiency gains and AI monetization improved the fair value range.

Jan 30, 2026

ReiteratedHold

Maintained Hold while monetization improved but investment intensity stayed elevated.

Dec 16, 2025

NewHold

Initiated with a Hold stance given strong core economics but elevated spend uncertainty.

Bull / Base / Bear scenarios

Bull case

$632

Normalized support: Growth, margin, and cash-flow trends are mixed versus the upside case.

Base case

$553

Normalized support: Current margin, cash-generation, and balance-sheet profile support the base case.

Bear case

$430

Downside protection: Cash generation and balance-sheet support are mixed in the bear case.

Why this rating

The stock currently trades at $540 versus a base-case fair value of $553, implying +2.5 upside. That supports a Hold rating with Low confidence under the current model.

Current price

$540

Fair value

$553

Upside / Downside

+2.5 upside

Model signal / Confidence

Hold / Low

Confidence framing

Method agreement / dispersion

Valuation methods show a wider range from $473 to $662, which tempers conviction.

Margin strength

Operating margin is 41.4%, with -80 bps vs prior FY.

Balance sheet position

Balance sheet positioning remains net cash positive at $22.9B, with net cash positive.

Valuation methods

Method	Implied Value	Weight
DCF (Base)	$473	50%
NTM P/E Multiple	$615	30%
EV/EBITDA Cross-check	$662	20%

Buy / Hold / Sell output

Current model recommendation

Hold

Price: $540

Fair value: $553

Implied upside / downside: +2.5 upside

Latest published rating: Buy on Mar 20, 2026

Model vs published view

Current model signal differs from the latest published analyst rating.

The displayed rating is anchored to the base-case fair value. Buy is assigned at 8% or greater implied upside, Hold between -10% and +8%, and Sell at -10% or worse, with borderline calls cross-checked against normalized operating, cash-generation, and balance-sheet support. Confidence reflects valuation dispersion, operating margin profile, and balance-sheet strength.

What changed section

2026-03-20

Raised ad monetization assumptions after stronger Reels checks

Impact: +1.8% base case

2026-03-13

Lifted AI infrastructure spend in outer years

Impact: -0.7% DCF fair value

2026-03-06

Improved messaging monetization contribution

Impact: +0.6% EPS outlook