Meta Platforms, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +35

53 ETFs Add to Meta Platforms (META) on Thursday

Company update AI-generated analysis

πŸ“ˆ Fifty-three ETFs added to Meta Platforms shares on Thursday, Oct. 22, driving net buying of $74.7 million.

πŸ”„ This positive flow snapped a two-day streak of net selling, which included a $500.4 million outflow on Oct. 21.

πŸ’° The SPDR S&P 500 ETF Trust (SPY) was the largest buyer, increasing its position by $34.7 million.

πŸ“Š Meta reported trailing-12-month revenue of $241.61 billion with a year-over-year growth rate of 28.3%.

πŸ’Ή The stock trades at a P/E ratio of 21.91 and a P/S ratio of 6.83 as of the latest data.

πŸ“± Meta's revenue is derived primarily from advertising placements across its Family of Apps including Facebook and Instagram.

πŸ“‰ Shares are down 2.4% year to date despite strong underlying financial performance metrics.

πŸ† The company holds a GF Score of 99, indicating a high grade based on GuruFocus valuation models.

Bullish Signals
  • ETFs turned positive with net buying of $74.7 million on Oct. 22, snapping two days of significant selling pressure.
  • Trailing-12-month revenue reached $241.61 billion, reflecting a robust 28.3% year-over-year growth rate.
  • The company maintains strong profitability with gross margins at 81.0% and net margins at 31.1%.
Risk Factors
  • The stock is down 2.4% year to date, indicating recent price weakness despite positive revenue growth.
  • ETF activity shows volatility with a massive $500.4 million net outflow recorded on Oct. 21.
Full Analysis
On Thursday, October 22, fifty-three ETFs increased their holdings in Meta Platforms (META) while thirteen reduced theirs, resulting in a net buying volume of $74.7 million. This activity marked a reversal from the previous two trading days, which saw significant net selling of $500.4 million on October 21 and $129.2 million on October 20. The shift to positive ETF flows follows a streak of prior net buying on October 19 and October 16, though the current buying trend has lasted only one day. The largest contributors to this inflow were the SPDR S&P 500 ETF Trust (SPY), which added $34.7 million, followed by the iShares MSCI USA Small-Cap ETF (DFUS) with $12.7 million and the iShares Russell 1000 Growth ETF (IWF) with $7.7 million. Other notable buyers included the Invesco QQQ Trust (IXP), which increased its stake by 8,560 shares worth $5.6 million, along with CGGR and IUSG adding $4.5 million and $3.6 million respectively. Meta Platforms continues to operate within the Communication Services sector, deriving substantially all of its revenue from advertising placements across its Family of Apps, which includes Facebook, Instagram, WhatsApp, Messenger, and Threads. The company reported trailing-12-month revenue of $241.61 billion, representing a 28.3% year-over-year increase, with gross margins at 81.0% and net margins at 31.1%. Currently, the stock trades at a price-to-earnings ratio of 21.91 and a price-to-sales ratio of 6.83.