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 headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. 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

Meta has strong profitability and very high capital efficiency, but the market is already pricing this in with fairly generous multiples. A P/E of 21.8 is only slightly above the industry median, while P/S of 6.51, P/B of 5.64, and P/FCF of 36.33 look noticeably more expensive than the sector, which limits the potential for further upside without an acceleration in growth. At the same time, margins remain outstanding: gross margin of 81.75%, operating margin of 38.08%, and net margin of 29.84% — all well above industry benchmarks. ROE of 29.73%, ROA of 17.98%, and ROI of 23.76% confirm that the business is highly effective at turning revenue and capital into profit. Revenue, gross profit, and EBITDA remain at high levels, while shareholders’ equity and assets have grown significantly over the past five years, supporting fundamental resilience. On the other hand, debt has increased to 83.66 billion, and total liabilities have also risen, so the balance sheet no longer looks as “light” as it once did. Debt/Equity of 0.32 remains moderate and better than the industry median, but the increase in liabilities calls for caution. A quick ratio of zero looks formally weak, although its significance for Meta is limited due to the structure of working capital and the large cash balance. Cash on the balance sheet is very substantial at 90.26 billion, and a current ratio of 2.23 points to comfortable short-term liquidity. The dividend yield of 0.07% has virtually no impact on the investment case and does not compensate for the high valuation. The trend shows that business quality remains high, but some profit and return metrics are already below the peak levels of previous periods. Overall, the fundamentals support a premium to the market, but do not justify an aggressive increase in the target price: the valuation looks more fairly priced with a modest margin of safety than clearly undervalued.

Meta Platforms, Inc.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Слабый индекс, без изменений. Уверенность медведей остается на низком уровне.

Weak index, flat. Bearish confidence remains low.

Сильный индекс, без изменений. Нейтральный рынок.

Слабый индекс, незначительно упал

Сильный индекс, без изменений. Отток средств из шортов на высоком уровне.

Strong index, flat. Outflow of funds from shorts at a high level.

Meta remains a high-margin and profitable business, but expensive valuation multiples and rising debt limit its re-rating potential.

Key Points
IPOs are a way for corporations to raise money by selling newly created shares of the company to any investor who wants to buy them at a predetermined price.
Despite the bullish buzz often resulting from an IPO, most of the highest-profile ones don't perform all that well out of the gate.
A little common sense can help you determine which of these opportunities are worth the risk, and which ones aren't.
The enthusiastic trading activity surrounding Space Exploration Technologies' (NASDAQ: SPCX) recent IPO certainly wasn't the first time I had witnessed the phenomenon. Indeed, I was involved in the markets all the way back in the 1990s and watched when a bunch of new technology stocks came to the market in response to the advent of the internet.
There's no denying, however, that SpaceX's IPO has rekindled investor interest in such opportunities. This raises the question(s): What exactly is an IPO anyway, and how do I pick winners when most of these newly available stocks are trading down a year later?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What's an IPO?
"IPO" is an acronym for "initial public offering." That just means a company is issuing shares for the first time that will become publicly traded via a stock exchange.
In most cases, the purpose of an IPO is to raise capital from investors using an intermediary called an underwriter, or investment bank. In a small handful of cases, though, a public offering can be used to facilitate the sale of an insider's or founder's stake in a company. It's the same either way for investors -- a privately held company that you couldn't invest in before becomes one you can buy into, by virtue of it "going public."
Just be careful if you're hoping to plow into the next splashy IPO like the ones rumored to be in the works for artificial intelligence (AI) names like OpenAI or Anthropic. While the bullish buzz surrounding both companies' plans is palpable, the performance track record for most newly minted stocks isn't all that great.
An analysis by financial advisor Edward Jones quantifies the concern, highlighting that between 2011 and 2020 -- a decade when Facebook (now Meta Platforms (NASDAQ: META)), Snapchat parent Snap, and Twitter (now X) all went public -- the typical technology company's newly issued shares were priced down an average of 14% just six months after their IPO was completed. Separately but similarly, recent number-crunching done by Burney Wealth Management Managing Partner Adam Newman indicated that shares of the 10 biggest (as measured by the total amount of funds raised) public offerings every year since 2000 were down one year after their IPO, with an average loss of 27%.
That doesn't mean that at least some of these stocks didn't eventually go on to dish out some impressive longer-term returns, of course. For instance, Meta stock has been incredibly rewarding despite its rough start.
If you're playing the statistical odds of participating in public offerings or buying into new stocks immediately after their IPO, though, know that the odds are stacked against you. SpaceX's weakness in shares since reaching its post-IPO peak in June is proof of that.
Fortunately, there's something you can do to help improve those odds.
How I filter out IPO winners
You never really know how the market's going to see -- and price -- a new stock. But there are three tendencies I've observed that help me figure out which IPO stocks are likely to perform well and which ones aren't.
1. It's already a well-established business
Most initial public offerings are done by existing businesses. However, not all of them have been around a particularly long time. That makes it difficult to know whether they've got the staying power to keep investors convinced a stock is worth buying and holding rather than dumping it. Blue Apron, Stitch Fix, and Groupon come to mind as examples of companies that investors clamored for to go public before any had actually proven their business models could drive sustainable growth.
At the other end of the spectrum, many investors are surprised to learn that even though credit card giant Visa (NYSE: V) has been around in a recognizable form since 1958, it's only been publicly traded since 2008. It's been a particularly solid performer since then, though, leveraging its entrenchment and led by management with plenty of company-specific experience.
If you need an age range to start with, five to eight years' worth of successful history seems like a smart minimum standard. That operating history requirement can be shortened by persistent profitability, of course.
2. The less hype, the better
Speaking of judgment calls, here's another reality I've had to accept that you'll need to as well: All too often, the greater the hype, the poorer the post-IPO performance.
This actually makes sense. Since more upfront hype inflates the perceived value of a stock, that ticker starts out at a price that's even more unsustainable once it begins trading on an exchange. That's when investors have time to dig deeper and absorb more information. Ironically, the less noise surrounding an initial public offering, the better. That usually means -- for better or worse -- its pricing is simply rooted in its past, present, and plausible future fundamentals. Take Legence, Park Dental Partners, and Pattern Group as examples. These are companies that most people have never even heard of, and they all went public last year. Yet all three stocks are well up since their 2025 IPOs despite their lack of notoriety.
3. The numbers must make sense
Finally, while it's yet another judgment call you'll need to make, investors should be encouraged by the fact that every stock's price eventually makes some semblance of sense. If it's initially overvalued, the market will correct the mistake. If growth is materializing, investors will gradually price that growth in as well.
That doesn't mean young companies going through an IPO will be valued appropriately right out of the gate. Most won't, in fact. You'll need to rely on your experience and wisdom -- and realism -- to know when a steep premium is worth it and when it isn't.
That being said, a particularly important numerical detail that must "make sense" is how the company is already spending its money, and what it intends to do with the money it raises from its IPO. If the public offering's proceeds are going to be used to add production capacity for a product with proven demand, great! If it's going to be spent on marketing and promotion of a product or service that's already been around a while and just isn't selling well, perhaps a lack of marketing isn't the problem.
I'm reminded of GoPro's (NASDAQ: GPRO) 2014 public offering. At the time, investors were happy to hand over more than $400 million to the touted maker of high-end action cameras "for general corporate purposes, including working capital, and to repay our term loan [$111 million at the time] under our credit facility." A closer look at its filing would have revealed, however, that even after being in business since 2004, its single-biggest operating expense was still (by far) sales and marketing. No one denies its action cameras were and are of the highest quality. That level of spending on promotion simply suggested that most consumers just didn't need or want a high-end action camera. Spending more on it wasn't likely to help.
And it didn't. That's why GoPro shares are now trading more than 90% below their well-hyped IPO price.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 950%* — a market-crushing outperformance compared to 210% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of September 12, 2026.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Visa. The Motley Fool recommends Stitch Fix. The Motley Fool has a disclosure policy.

What Is an IPO? Most New Listings Lose Money in Year 1. Here's How I Filter the Winners.

Key Points
Palantir looks like it could be one of the biggest agentic AI winners.
Salesforce has positioned itself to be an agentic AI platform, and that is finally starting to show up in its results.
Meta's new Muse AI agent opens the door to a new big revenue stream.
The age of agentic AI is here, and the world will likely see meaningful changes in the coming years. AI is advancing quickly, which is both exciting and scary.
Agentic AI is exciting in that AI agents will be able to help humans by going out and performing tasks, greatly increasing productivity and freeing up people's time. It's scary in that no one knows what this will mean for the job market in the next decade. Meanwhile, an Anthropic employee saying there is a greater than 10% chance the AI will wipe out human civilization in the next 10 years isn't exactly comforting.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But on our way to utopia or the end of the world, let's look at three agentic AI stocks that can help your portfolio now.
1. Palantir Technologies
As AI agents advance, organizations will need a way to control them, and that is where Palantir Technologies (NASDAQ: PLTR) can step in with its AI platform (AIP). The company said its platform-native agent engine SDK (software development kit) will help customers answer the three most important questions about AI agent actions: who authorized it, how much it costs, and whether the action can be trusted.
When it comes to agentic AI, the stakes are high, and Palantir's AIP can act as a true agent operating system. The company's secret sauce is its ontology, which links all the data it gathers to real-world objects, workflows, and processes.
AIP is already seeing rapid growth and helping organizations across industries solve mission-critical problems. The rise of AI agents will likely only accelerate the need for their platforms, making it a stock to own despite its high valuation.
2. Salesforce
Salesforce (NYSE: CRM) has devoted itself to becoming an agentic AI-first company, and those efforts are starting to pay off. Last quarter, it saw annual recurring revenue (ARR) for its Agentforce agentic AI platform soar 240% year over year to $1.5 billion, while its Data 360 ARR tripled to $2.4 billion.
Salesforce has worked to make its platform a single source of truth for launching AI agents. It developed zero-copy technology to quickly and cheaply extract data from sources outside of organizations, like data warehouses and cloud providers, and it acquired master data management company Informatica to clean up and organize this data. Meanwhile, Slack has become one of its primary AI agent launching pads, with Slackbot hitting 1 million active users after debuting just five months ago.
Salesforce has both the backend and frontend to become one of the biggest agentic AI winners.
3. Meta Platforms
Meta Platforms (NASDAQ: META) may be a surprise addition to this list, but the introduction of its Muse AI agent looks like a game changer. While most agentic AI companies have focused on enterprise AI agents, Meta has just introduced a new personal AI agent that can help individuals with routine chores and tasks.
Meta's Muse AI agent will be offered in several tiers. There will be a free tier, while people who use it more often can opt for the $20-a-month Power tier or the $100-a-month Maximum tier. The agent will be able to do such things as make purchases, book travel, send emails and party invitations, work to lower bills, and take recipes and create grocery lists. Users will have to grant the agent access to things like email, payments, and calendars, and they can also allow it to access data from other apps they use regularly.
Meta has said it won't share users' data with its ad systems, but it will still indirectly impact the ads users see. The big benefit for the company comes from capturing affiliate and processing fees when the agent purchases something on behalf of a user. This could be a huge new source of revenue for the company over time and help diversify its model away from just advertising. In fact, simply monetizing Facebook Marketplace and making it more transaction-based could be a huge driver.
Given this opportunity and the strength of its core business, the stock looks like a long-term winner.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Geoffrey Seiler has positions in Meta Platforms and Salesforce. The Motley Fool has positions in and recommends Meta Platforms, Palantir Technologies, and Salesforce. The Motley Fool has a disclosure policy.

3 Agentic AI Stocks to Own Before AI Changes the World as We Know It

Key Points
The AI boom is real.
Customer commitments reduce near-term risk, but they don't eliminate long-term uncertainty.
The key question isn't whether AI will transform the economy. It's whether the incremental dollars invested in AI infrastructure will generate an attractive incremental return.
$760 billion. That's roughly how much Amazon (NASDAQ: AMZN), Alphabet, Microsoft, and Meta Platforms are expected to spend on capital expenditures in 2026.
The number is staggering. It's also growing rapidly. The four companies spent roughly $413 billion in 2025, meaning their combined capital spending could jump by more than 80% in just one year.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Much of that spending is going toward the infrastructure needed for artificial intelligence: data centers, servers, GPUs, custom chips, networking equipment, and power capacity.
The bull case is easy to understand. AI demand is exploding and cloud providers can't build capacity quickly enough. But there is another possibility investors should consider. What if the industry is building too much capacity?
That's the risk I think investors should be watching.
The numbers are difficult to ignore
The explosion in demand for AI is real. We don't have to look far to understand that -- just think about how much we engage with ChatGPT to answer our questions, or how much we rely on Gemini or Claude to solve our work problems.
So, there is no doubt that companies must invest to provide these services. But $760 billion for four companies is staggering. In fact, Goldman Sachs forecasts AI investments will exceed $1 trillion in 2026.
And strategically, it makes sense for these big tech companies to invest heavily to gain market share in the AI computing industry. From management's perspective, sitting still could be far more dangerous than spending aggressively. So the companies are racing to build. And that's where the risk begins.
Customer commitments don't eliminate the risk
One of the strongest arguments supporting this spending is that much of the infrastructure already has customers waiting for it.
Amazon, for example, says customer commitments back a substantial portion of its 2026 AWS capital expenditure. Microsoft similarly points to its enormous customer demand.
That's reassuring. But investors should be careful about what these commitments actually mean: Customers want the capacity today. They don't necessarily tell us how much capacity those customers will want five years from now.
That's an important distinction. AI is developing extraordinarily quickly. Models are becoming more efficient. Hardware is improving. Businesses are still figuring out which AI applications will generate genuine economic value. A company can sign a multiyear commitment today and still find that its computing requirements change dramatically over time.
The same thing happened throughout previous technology cycles: Demand forecasts made during periods of rapid adoption can look very different once the technology matures.
A five-year contract may provide visibility. It doesn't provide certainty about the ultimate economics of the AI industry.
The biggest question is asset utilization
Imagine a hotel owner building 1,000 rooms because demand is growing rapidly. If occupancy reaches 95%, the investment looks brilliant. If occupancy eventually falls to 50%, the same building becomes a capital-allocation problem.
AI infrastructure works similarly. Companies are spending enormous amounts of money today to ensure they have enough computing capacity tomorrow. The crucial variable is how intensively that capacity gets used -- and at what price.
If AI demand continues to scale sustainably in the next decade, the returns could be spectacular. But if computing becomes dramatically cheaper, AI models become more efficient, or customers discover that they don't need as much infrastructure as expected, the economics could change.
But the bull case is still powerful
None of this means the AI infrastructure boom is a fake. In fact, there is considerable evidence that the demand is real.
For instance, AWS reported a 37% rise in revenue in the second quarter of 2026 to a $169 billion annualized revenue run rate, the fastest growth in 18 quarters. Similarly, Google Cloud saw revenue surge 82% to $24.8 billion in the same quarter.
In other words, these big tech companies aren't making these investments from weak financial positions. They are reinvesting their profits into the capex, expecting to generate even more profits in the future.
The only question left is whether the investment will earn a sufficiently high return over time.
What does it mean for investors?
I wouldn't bet against Amazon, Microsoft, Alphabet, or Meta simply because they're spending hundreds of billions of dollars on AI. These companies have some of the strongest balance sheets, technology platforms, and customer relationships in the world.
But I also wouldn't assume that every dollar of AI capital expenditure will automatically generate an attractive return. In other words, this is ultimately a capital-allocation issue.
Investors should ask the most important question here: Will the incremental dollars invested in AI infrastructure generate an attractive incremental return five or 10 years from now? That's the number investors can't see yet, but should closely track in the coming quarters.
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Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

The $760 Billion AI Risk That Nobody Is Talking About. But Should.

Key Points
Nike's turnaround is progressing at a sluggish pace.
The current operating environment remains challenging, as Nike doesn't have a clear path to return to growth.
Alphabet replacing Verizon in the Dow makes Nike the lowest-weighted component.
S&P Global (NYSE: SPGI) announced that Nike (NYSE: NKE) will be removed from the S&P 100, effective Sept. 21, as part of its quarterly rebalancing. Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive will also be removed, while Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk will be added.
Here's why Nike is being removed from the S&P 100, whether it presents an ominous warning for its potential deletion from the Dow Jones Industrial Average (DJINDICES: ^DJI), and whether the blue chip dividend stock is a good buy now.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Justifying Nike's S&P 100 removal
The S&P 100 isn't the 100 largest S&P 500 (SNPINDEX: ^GSPC) components by market cap. Rather, it's a curated sector that represents blue chip companies across stock market sectors and industries with a focus on megacap and large-cap behemoths.
Nike has remained in the index due to its industry leadership, not its size. Nike is now the 213th-highest-weighted company in the S&P 500. It's also the lowest-ranked component in the iShares S&P 500 100 ETF -- which uses the S&P 100 as a benchmark.
Nike's removal makes sense given that its stock price continues to fall and its industry leadership isn't what it used to be. What's more, Dell, Palo Alto, Arista, and Sandisk have all gone up so much that they are all in the top 50 in S&P 500 components by market cap. Nike's industry leadership premium no longer justifies its inclusion in the S&P 100 over companies that are worth several times more and contributing to the S&P 500's gains, whereas Nike has been a drag on the index.
As you can see in the chart, Nike is at its lowest level in more than a decade, with revenue and earnings down in recent years and operating margins plummeting from the low- to mid-high teens pre-pandemic to under 9% today. There's a laundry list of issues at Nike, including supply chain and corporate strategy blunders, slowing growth in China, tariffs, domestic consumer spending pressures, and increased competition from formidable rivals.
Even with these issues, it's important to remember that investors care more about where a company could be headed than where it has been. Investors may take one glance at the stock's price action and assume Nike is a no-brainer buy. But Nike hasn't returned to growth, and its runway for doing so is shrouded in dense uncertainty.
As part of its Win Now turnaround plan, Nike has implemented cost cuts and changed its strategy to better balance wholesale and direct-to-consumer. For fiscal 2026, which ended on May 31, wholesale revenue grew 4% year over year, with double-digit growth in North America. But many of the challenges that weighed on the business remain -- namely, competition, current operating trends in consumer discretionary spending, and the China slowdown.
Better Dow candidates
With Alphabet replacing Verizon Communications in the Dow this past June, Nike is now the lowest-ranked component in the price-weighted index -- putting it on the hot seat for the next stock most likely to be replaced. With just 30 components, the Dow is more exclusive than the S&P 100, Nasdaq-100, or the S&P 500. The Dow has become increasingly tech-stock-focused in recent years to reflect the evolving economy -- adding Nvidia and Amazon in 2024, and now Alphabet this year. However, there are massive companies that could muscle their way into the Dow, such as Broadcom, Meta Platforms, Tesla, Space Exploration Technologies, or maybe even Tesla and SpaceX combined if they merge.
Although the Dow has traditionally included industry-leading dividend-paying companies, the dividend-paying aspect of the criteria seems to carry less weight today than in years past, as Alphabet and Nvidia both yield less than 0.5%, and Amazon doesn't even pay a dividend.
Nike has raised its dividend for 24 consecutive years and yields a sizable 4.3%. But that payout could be under pressure if Nike's dividend expense begins to absorb too much of its free cash flow.
Nike will be removed from the Dow
Nike could be a good buy for investors who are confident in its brands and management's ability to execute a successful turnaround. And if the broader stock market were selling off, perhaps Nike would be given more grace.
But the major indexes, including the S&P 500 and the Dow, are hovering around all-time highs -- shortening the leash for underperforming stocks like Nike, especially now that it is closer to the median S&P 500 component weight and makes up a mere 0.4% of the Dow.
At this point, I think it's only a matter of time before Nike is removed from the storied Dow Jones index. And most investors may be better off waiting for concrete signals of a sustained turnaround before buying the stock.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Daniel Foelber has positions in Broadcom, Nike, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Arista Networks, Broadcom, Colgate-Palmolive, Honeywell Aerospace, Meta Platforms, Nike, Nvidia, S&P Global, and Tesla. The Motley Fool recommends Palo Alto Networks and Verizon Communications. The Motley Fool has a disclosure policy.

Nike Is Being Deleted From the S&P 100. Is Its Seat in the Dow Jones Industrial Average in Jeopardy?

Key Points
The social media titan kept its dividend level.
This was encouraging, but it shouldn't be anyone's primary reason to buy the stock.
Meta Platforms (NASDAQ: META) ended the week with a small but encouraging piece of good news. This concerned the company's quarterly dividend, which it's been doling out since early 2024. Investors like consistency, particularly in the frequently volatile and disruptive tech sector. Meta's stock closed the day up by 0.6%.
Going steady
Well, after market close on Thursday, Meta said its board of directors declared a new quarterly payout of just under $0.53 per share of its Class A and Class B common stock (of the two, Class A is the one that is publicly traded).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The dividend is to be paid on Monday, Sept. 28, to stockholders of record as of Sept. 21. At the most recent closing price, it would yield 0.3%.
Meta has paid a quarterly distribution in every quarter since March 2024, when it initiated the payout at $0.50 per share. Since then, it has only been raised once, with the March 2025 lift to the current level.
Better reasons to buy
With that wafer-thin yield, we can confidently say that few investors buy and hold Meta stock for the dividend. So ultimately it's more of a morale booster than anything; still, if I were a shareholder, I'd be pleased that the company is at least providing a few coins from its vast free cash flow.
With that, I'd say an investment in Meta should be far more heavily weighed toward the company's growth potential. This remains considerable given the size and reach of its Facebook in particular, which, after many years, remains an irresistibly attractive platform for any kind of advertiser.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

Why Meta Platforms Stock Only Bumped Slightly Higher on Friday

Key Points
Despite mixed performance from Ark's funds this year, Wood continues to stick with industry leaders.
Two Ark ETFs were buying Meta as AI-driven ad improvements continue to drive strong revenue performance.
Three Ark funds bought a combined $45 million worth of Rocket Lab stock after CEO Peter Beck described launch demand as "extreme."
Four of Ark Invest's exchange-traded funds (ETFs) have outperformed the S&P 500 over the past three years, although the flagship ARK Innovation ETF (NYSEMKT: ARKK) has underperformed the market so far in 2026, up about 9% at the time of writing.
Still, Ark's founder and Chief Executive Officer, Cathie Wood, continues to back the companies benefiting from artificial intelligence (AI) and the emerging space economy. Several Ark funds have been buying shares of Meta Platforms (NASDAQ: META) and Rocket Lab (NASDAQ: RKLB), with both stocks trading well off their highs.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Shares of Meta Platforms are trading 18% below their previous all-time high, and Wood seems to like the stock's value at current levels. Two Ark funds -- the ARK Next Generation Technology ETF (NYSEMKT: ARKW) and Ark Innovation ETF -- bought a combined $27.9 million of Meta stock on Sept. 9, 2026. It is a relatively small position, accounting for about 3% of the ARK Next Generation Technology ETF and 1.6% of the ARK Innovation ETF.
Wood is bullish on AI, robotics, and other disruptive tech over the long term. Meta fits that thesis because it's using AI to lift ad performance across its family of apps, while also investing heavily in data center capacity and chips.
Ark's research team sees a durable moat in Meta's 3.6 billion daily app users, which gives the company an immediate distribution and monetization engine for AI. Improvements to recommendations and ad-ranking have driven strong growth in ad impressions and ad pricing, helping second-quarter revenue rise 28% year over year.
During the second-quarterearnings call CEO Mark Zuckerberg said, "On a dollar basis, our ads business is reporting faster year-over-year revenue growth than any other company's reported ad business."
There seems to be more runway for its ad growth. Zuckerberg mentioned there are now 9 million small businesses using at least one of its ad creative tools, and the company continues to roll out new creative solutions designed to improve advertisers' returns.
Meta expects to spend between $165 billion and $169 billion on capital expenditures in 2026. That pace has pressured free cash flow in 2026 and seems to be weighing on the stock price. But Wood seems to like the company's ability to turn those investments into higher free cash flow over time. The stock is trading at a reasonable forward price-to-earnings multiple of 21, which may undervalue Meta's long-term growth.
Rocket Lab
Shares of Rocket Lab are down almost 60% after hitting an all-time high of $151 earlier this year. Three Ark ETFs bought about $45 million worth of Rocket Lab shares between Aug. 31 and Sept. 8, 2026. Rocket Lab currently makes up 5.5% of the Ark Space and Defense Innovation ETF, although Space Exploration Technologies remains Wood's top bet at over 11% of the fund.
Morgan Stanley's research estimates the space industry will be worth $1 trillion by 2040. In a June 1, 2026, newsletter, Ark's research team expressed its view that lunar exploration and satellite deployments should benefit multiple launch providers, "including emerging players like Rocket Lab and Stoke Space."
Rocket Lab reported a 62% year-over-year increase in revenue in the second quarter, with a record backlog of $2.36 billion. During the Q2earnings call CEO Peter Beck characterized the demand for launch services as "extreme." It signed $437 million of bookings since March 31 for Electron, HASTE, and the company's larger Neutron rocket, which is still under development.
Wood appears to be betting that Rocket Lab can grow into an end-to-end space infrastructure company. Its pending acquisition of Iridium will extend Rocket Lab's launch and manufacturing operations with a constellation of 66 satellites that generate recurring revenue from more than 2.5 million subscribers.
The stock still looks expensive on a sales multiple. But its $38 billion market cap (share price times shares outstanding) is just a small slice of the industry's potential, leaving room for substantial long-term upside for investors. With management noting that options for launch bookings are "extremely limited" beyond 2029, this positions Rocket Lab well for growth.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
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John Ballard has positions in Space Exploration Technologies. The Motley Fool has positions in and recommends Meta Platforms and Rocket Lab. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Stocks Cathie Wood Is Snapping Up at a Discount Right Now

(RTTNews) - Meta Platforms Inc. (META) is asking some individual contributors in its Applied AI (AAI) division to return to management roles as part of a recent reorganization, according to people familiar with the matter.
The programme is voluntary and comes after Meta reassigned about 7,000 employees to AAI, including some managers who were moved into individual contributor positions.
The shift represents a partial reversal of Meta's recent push toward flatter teams and fewer middle managers as the company seeks greater efficiency while increasing its investment in artificial intelligence.
Meta eliminated about 10 percent of its workforce this year in layoffs that disproportionately affected managers. The company has also previously allowed some employees to leave AAI after they objected to being reassigned to the newly created division.
The latest management changes highlight the evolving structure of Meta's AI operations as it balances leaner teams with the need for additional leadership.

Meta Asks Some AI Employees To Become Managers Again In New Reorganization

Friday, September 11, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc. (META), Marvell Technology, Inc. (MRVL) and Amphenol Corporation (APH), as well as two micro-cap stocks SandRidge Energy, Inc. (SD) and BK Technologies Corporation (BKTI). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> CPI +3.4%, as Expected: Wherefor Go Fed Rates?
Today's Featured Research Reports
Shares of Meta Platforms have underperformed the Zacks Internet - Software industry over the year-to-date period (-2.2% vs. -0.3%). The company’s spending is weighing on margins and free cash flow, while Reality Labs remains loss-making. Competition for users and ad budgets remains intense, and legal exposure is more visible.
Meta’s scale, distribution and ad execution support the growth case, but the investment cycle and uncertain timing of AI monetization keep the risk-reward balanced over time. Nevertheless, Meta Platforms is extending AI deeper across its apps, while recommendation and advertising upgrades are supporting engagement and advertiser returns today.
WhatsApp, subscriptions, business agents and AI glasses broaden the long-term monetization runway beyond feed advertising and add enterprise opportunities. At the same time, Meta is committing substantial capital to models and infrastructure before returns from newer AI products are fully established.
(You can read the full research report on Meta Platforms here >>>)
Marvell’s shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+179.9% vs. +30.7%). The company is benefiting from rising AI infrastructure demand, with custom silicon, interconnect, switching and optics supporting record data center revenues and a higher multi-year outlook.
Management now expects faster growth through fiscal 2028 as custom programs broaden and scale-up networking gains traction. The NVIDIA relationship and recent acquisitions expand Marvell’s role across next-generation AI architectures, while the communications and other segment provides some diversification.
Offsetting these positives, the custom ramp-up is expected to weigh on gross margin, and revenues are becoming more concentrated in data center and large customers. Supply constraints, export controls and tariffs can disrupt execution, while intense competition and uneven communications demand add volatility. These factors support a balanced view.
(You can read the full research report on Marvell here >>>)
Shares of Amphenol have outperformed the Zacks Electronics - Connectors industry over the year-to-date period (+22.5% vs. +19.3%). The company is benefiting from sustained demand for high-speed, power and fiber interconnect products, led by AI-related IT datacom programs and supported by defense, commercial air and diversified industrial applications.
Record orders and positive book-to-bill across every end market reinforce demand visibility, while customer commitments help share investment risk. CommScope is expanding Amphenol’s optical reach and is delivering better sales, margins and earnings accretion than initially expected. Margin expansion, cash generation and electronics-content growth support the investment case.
However, risks remain from communications-network weakness, evolving AI architectures, China tax exposure and higher financing costs. Even so, diversified growth, deeper customer relationships and acquisition execution support an Outperform view.
(You can read the full research report on Amphenol here >>>)
SandRidge Energy’s shares have gained +5.3% over the year-to-date period against the Zacks Oil and Gas - Integrated - United States industry’s gain of +43.1%. This microcap company with market capitalization of $543.90 million, have its investment case supported by a multi-year Cherokee development runway, repeatable well performance and improving drilling efficiency, providing a foundation for sustained production growth.
The pending core-area acquisition should extend inventory and reserve visibility while fitting within the company’s existing operating footprint. A debt-free balance sheet and strong liquidity provide flexibility to fund development, pursue selective acquisitions and adjust activity as commodity economics change.
Shareholder returns remain backed by internally generated free cash flow through regular dividends, with repurchases available as an additional lever. Operational reliability, safety performance and ongoing cost discipline further support scalable execution as the Cherokee program expands.
(You can read the full research report on SandRidge Energy here >>>)
Shares of BK Technologies have underperformed the Zacks Wireless Equipment industry over the year-to-date period (-1.3% vs. +19.5%). This microcap company with market capitalization of $268.80 million, face risks around public-sector purchasing cycles, product-launch execution, software monetization, rising development costs and margin sustainability.
The valuation suggests that investors are assigning a degree of caution to BKTI’s growth prospects, leaving scope for re-rating if new products, software initiatives and agency wins translate into more consistent revenue growth and stronger operating leverage.
Nevertheless, BKTI’s investment case rests on deeper penetration of state and local public-safety agencies, broader adoption of its multiband radio portfolio and the development of recurring software revenues through BK ONE. The BKR 9000 and BKR 9500 could expand BKTI’s share of customer spending, while contract manufacturing provides scalability and fulfillment flexibility. A strong balance sheet supports continued investment without added financial leverage.
(You can read the full research report on BK Technologies here >>>)
Other noteworthy reports we are featuring today include Venture Global, Inc. (VG), C.H. Robinson Worldwide, Inc. (CHRW) and Evercore Inc. (EVR).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
End-Market Strength & Diversification Aids Amphenol (APH)
Featured Reports
Dividends & Buyback Aid C.H. Robinson (CHRW) Amid High Debt
Per the Zacks Analyst, C.H. Robinson's measures to reward shareholders through dividends and share buybacks are encouraging. High debt remains a concern.
Solid Advisory Revenue Aid Evercore (EVR) Amid Rising Costs
Per the Zacks analyst, Solid advisory revenue growth and a strong balance sheet will likely drive Evercore's top-line expansion. Yet, rising costs remain a concern.
Strong Myqorzo Uptake Fuels Cytokinetics (CYTK), Overdependence a Woe
Per the Zacks analyst, strong early uptake of Myqorzo and expanding international presence boost Cytokinetics' growth prospects. However, the company is solely dependent on Myqorzo for growth.
Leasing Momentum Aids Alexandria (ARE), Renewal Economics Hurt
Per the Zacks analyst, Alexandria benefits from leasing momentum, long-term leases and liquidity. However, negative renewal economics, lower occupancy and elevated leverage pose key risks.
MarketAxess' Strong Credit Trading Trends Aid, Rising Costs Hurt
Per the Zacks analyst, higher credit trading volumes and AI-enabled tools support MarketAxess' growth, while rising costs and market share pressure remain key concerns.
Key Acquisitions, Rising Air Travel Demand Boost AAR Corp. (AIR)
Per the Zacks analyst, AAR Corp. is expected to see strong growth in its parts supply business, supported by rising air travel demand. Key acquisitions will also boost its growth.
OPKO Health (OPK)'s Diverse Portfolio and Pipeline Support Growth
Per the Zacks analyst, OPK's diversified portfolio, strategic partnerships and expanding pipeline support long-term growth. Yet, persistent losses, clinical risks and forex volatility remain concerns.
New Upgrades
Global LNG Demand & Rising Contract Backlog Aid Venture Global (VG)
Per the Zacks analyst, the increase in global LNG demand benefits Venture Global's export projects along the U.S. Gulf Coast. Its growing contract backlog provides visibility into future earnings.
Plexus Gains from New Program Ramps & Industrial Tailwinds
Per the Zacks analyst, Plexus is benefiting from new program ramps, funnel growth and industrial tailwinds. Strength in the aerospace and defense market sector is another plus.
Power Growth & Teledata Strength Aid Argan's (AGX) Performance
Per the Zacks analyst, Argan benefits from higher Power activity, Teledata growth and a strong backlog. Also, strong cash generation and debt-free operations support growth.
New Downgrades
Higher Operating Costs, Execution Risks Weigh on Energy Fuels (UUUU)
The Zacks analyst is concerned that higher operating costs will pressure margins. Also, its expansion strategy requires significant investment before projects can generate meaningful contributions.
Celsius Holdings (CELH) Faces Pressure From Weak Core Brand
Per the Zacks analyst, Celsius Holdings' CELSIUS brand faces pressure from club-channel softness, reduced innovation and SKU optimization. In 2Q, CELSIUS brand sales decreased 11.7% year over year.
Tractor Supply (TSCO) Grapples With Traffic and Demand Pressure
Per the Zacks analyst, Tractor Supply faces weak traffic, cautious discretionary spending and pressure across farm, ranch, pet and home improvement markets, weighing on its near-term growth.
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This article originally published on Zacks Investment Research (zacks.com).

Top Stock Reports for Meta Platforms, Marvell & Amphenol

Key Points
CoreWeave’s backlog grew to $104 billion in its latest quarter.
It expects to convert 75% of that backlog into revenue over the next four years.
More than 75% of its annualized revenue is already locked into those sticky contracts.
CoreWeave (NASDAQ: CRWV), a provider of cloud-based AI infrastructure services, went public at $40 per share on March 28, 2025. Its stock closed at a record high of $183.58 on June 20, 2025, but it now trades at about $90. Three major challenges weighed down its stock.
First, its enterprise value reached $91.1 billion -- or 18 times its 2025 sales -- when its stock hit its all-time high. Second, it struggled to justify that premium valuation as its debt and expenses surged. Lastly, a guidance cut related to data center delays in late 2025 spooked its investors.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, I believe CoreWeave is still one of the best recent AI IPOs to buy. Let's see why it still has plenty of upside potential, and why it's worth buying if you can tune out the near-term noise.
How fast is CoreWeave growing?
CoreWeave was once an Ethereum mining company, but it abandoned that business model after the cryptocurrency market's 2018 crash. It subsequently repurposed its GPUs to run AI tasks remotely and rebranded itself as an AI infrastructure company.
CoreWeave only operated three data centers at the end of 2022, but that network now spans 51 data centers across North America and Europe. It's installed more than a quarter of a million Nvidia's (NASDAQ: NVDA) high-end GPUs in those servers to train AI algorithms and process AI tasks. Nvidia also owns an 11.5% stake in CoreWeave, making it one of the company's largest investors.
As a dedicated provider of cloud-based data center GPUs, CoreWeave can process AI tasks roughly 35 times faster and at 80% lower cost than diversified cloud infrastructure platforms like Amazon Web Services (AWS) and Microsoft Azure. That's why its revenue skyrocketed as the generative AI market expanded.
In 2025, CoreWeave's revenue surged 168% to $5.1 billion as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 154% to $3.1 billion. But under generally accepted accounting principles (GAAP), which includes the interest on its debt and depreciation of its equipment, its net loss widened from $863 million to $1.17 billion.
In 2026, analysts expect its revenue to rise 151% to $12.9 billion as its adjusted EBITDA surges 144% to $7.5 billion. However, they expect its GAAP net loss to widen to $2.9 billion.
Why should you remain bullish on CoreWeave?
CoreWeave's bottom-line growth is wobbly. But that isn't surprising, since it's aggressively expanding its infrastructure to meet the AI market's demand for more processing power.
Its contracted revenue backlog expanded 246% year over year to $104 billion at the end of the second quarter of 2026. That's more than eight times higher than its projected 2026 revenue. Its top customers include Meta Platforms, Microsoft, OpenAI, and Anthropic.
During its first-quarter conference call in May, CEO Michael Intrator noted that "more than 75%" of its 2027 annualized revenue target of over $30 billion was locked into contracts. He also predicted that 75% of its backlog would be recognized as revenue within the next four years.
Based on that guidance, analysts expect CoreWeave's revenue and adjusted EBITDA to grow at CAGRs of 80% and 95%, respectively, from 2026 to 2028. At its current enterprise value of $96 billion, it trades at just 7 times this year's sales -- so it could soar a lot higher.
But investors should brace for a lot of volatility
CoreWeave is one of the only high-growth AI stocks I'd consider accumulating right now, but I also expect it to remain volatile for the foreseeable future. Its high debt-to-equity ratio of 14.3 at the end of the second quarter, lack of GAAP profits, and ongoing dilution will make it an easy target for the bears if the Fed hikes its benchmark rates this year to counter inflation.
But if you expect CoreWeave to defend its high-growth niche, grow its backlog, and for its GAAP profits to rise as economies of scale kick in, then it's still a promising long-term investment. Investors just need to brace for significant volatility and be ready to buy even more shares if it crashes.
Should you buy stock in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Leo Sun has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Ethereum, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

CoreWeave Is My Top IPO Pick Right Now: Over 75% of Its Revenue Is Locked In Through Contracts

Key Points
AppLovin is delivering massive growth and exceptional efficiency through its AI-driven mobile advertising engine.
Meta Platforms remains a dominant global force with billions of users and immense cash generation across its social ecosystem.
Which advertising technology giant is the better addition to your portfolio for 2026?
Investors evaluating AppLovin (NASDAQ:APP) and Meta Platforms (NASDAQ:META) are comparing two different approaches to digital advertising. One is a high-growth software specialist while the other is a global social media titan.
AppLovin provides the technology that helps mobile apps find and monetize users. Meta Platforms connects the world through its apps while selling highly targeted advertising space. Both companies are utilizing artificial intelligence to maintain their competitive advantages in 2026.
The case for AppLovin
AppLovin serves as a critical bridge in the mobile economy by helping developers grow their businesses. Its core technology, Axon, uses artificial intelligence to match advertisements with the users most likely to engage with them. As one of the prominent tech stocks in the mobile space, it recently divested its internal apps business to focus entirely on third-party software solutions.
In FY 2025, revenue reached nearly $5.5 billion, representing a significant 70% increase over the prior year. This expansion was accompanied by net income of approximately $3.3 billion. The company achieved a net margin of 60.8%, which measures how much of every revenue dollar is kept as profit after all expenses.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.7x, which compares total debt to the value owned by shareholders. The current ratio, measuring the ability to cover short term obligations with current assets, was a strong 3.3x. Free cash flow for the period reached $3.9 billion, representing the cash remaining after paying for operating costs and capital investments.
The case for Meta Platforms
Meta Platforms operates the most expansive social network in the world through Facebook, Instagram, and WhatsApp. Its Family of Apps serves nearly 3.6 billion daily users, providing a vast audience for advertisers ranging from small businesses to global brands. The company is also investing heavily in its Reality Labs division to develop next-generation mixed-reality hardware and software.
For FY 2025, the company reported revenue of close to $201.0 billion, which grew by roughly 22.2% year over year. Net income for the period was approximately $60.5 billion. Meta maintained a net margin of 30.1%, demonstrating its ability to generate high levels of profit even while investing billions into future technologies.
According to its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.4x, indicating a relatively conservative use of debt. The current ratio stood at roughly 2.6x, providing a healthy cushion for day to day operations. Free cash flow was highly robust at $46.1 billion, allowing the company to fund its ambitious AI research and return capital to shareholders.
Risk profile comparison
AppLovin faces intense competition from global technology leaders that control the mobile operating systems. Its growth is partially dependent on the policies of Apple (NASDAQ:AAPL) and Google regarding data privacy and app distribution. Furthermore, the company must manage the integration of recent acquisitions and address ongoing federal securities class action litigation regarding its financial disclosures.
Meta Platforms relies heavily on advertising revenue, which can be sensitive to broader economic downturns and shifts in consumer spending. The company faces a complex web of global privacy regulations like the GDPR and has recently settled significant litigation involving youth safety. Continued high spending on AI and virtual reality also carries the risk that these expensive investments may not generate immediate financial returns.
Valuation comparison
AppLovin carries a much higher premium relative to its annual sales.
Forward P/E
17.4x
19.9x
P/S ratio
15.3x
7.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with Meta, though AppLovin has built one of the most profitable software businesses in digital advertising, with margins that most companies would envy and an AI engine expanding into new verticals. AppLovin's Q2 revenue miss and below-consensus guidance were disappointing, but the underlying business model is sound.
Meta's Q2 was messy on the surface. Earnings missed estimates as legal charges, severance costs, and a dramatic increase in AI infrastructure spending all hit at once. But strip those one-time items out and the core advertising business is performing at the highest level in years. Revenue grew at a strong double-digit rate, more than 3.5 billion people used a Meta app every single day, and Instagram crossed 2 billion daily active users for the first time.
Meta is betting enormous amounts of capital on AI, which introduces uncertainty worth taking seriously. But the scale of its user base and advertising platform gives it a foundation that AppLovin simply cannot match. For a long-term investor, owning the platform that reaches more than half the world's population is a stronger starting point.
Should you buy stock in AppLovin right now?
Before you buy stock in AppLovin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Sara Appino has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.

Meta Platforms, Inc.

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