NASDAQ · Communication Services

Meta Platforms, Inc.

META · Internet Content & Information

$577.22

▲ 9.64 (1.7%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 81.9%

Operating Margin 40.6%

Net Income Margin 47.5%

Fin. Health

B⤢

Years to Pay Off Debt 3.2 yrs

Working Capital vs Long-Term Debt $4.3B

Working Capital $63.0B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 5.20x

Cash Flow

C⤢

Free Cash Flow $13.2B

CapEx % of Net Income 71.0%

Owner Earnings $51.8B

Profitability

Gross Profit Margin 81.9%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 40.6%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 47.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 3.2 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $4.3B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $63.0B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $13.2B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 71.0%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $51.8B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Meta Platforms, Inc.

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.

Market Data

Market Cap $1,465.2B

Enterprise Value $1,529.2B

P/E (TTM) 21.00

Dividend Yield 0.37%

Exchange NASDAQ

Key Margins

Gross Profit 81.9%

Operating Margin 40.6%

Net Margin 47.5%

Company Info

Sector Communication Services

Industry Internet Content & Information

Employees 77986

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Meta Platforms, Inc. at $577.22.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $577.22, the stock trades at a 258% premium to its Graham Number of $161.45. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	81.9%▲	81.8%•	N/A
Operating Margin %	40.6%▼	41.3%•	N/A
Net Income %	47.5%▲	38.0%•	N/A
Diluted EPS	10.44▲	8.88•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$395.2B	$366.0B	N/A
Total Debt	$86.8B▲	$83.9B•	N/A
Working Capital	$63.0B▼	$66.9B•	N/A
Years to Pay Debt	3.24	3.68	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$13.2B▼	$14.8B•	N/A
Owner Earnings	$51.8B	$49.6B	N/A
CapEx % of Net Income	71.0%	93.9%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-520,800	-12,035
Tax Rate For Calcs	0	0
Normalized EBITDA	29,615,000	31,339,000
Total Unusual Items	-1,302,000	-118,000
Total Unusual Items Excluding Goodwill	-1,302,000	-118,000
Net Income From Continuing Operation Net Minority Interest	26,773,000	22,768,000
Reconciled Depreciation	5,999,000	5,411,000
Reconciled Cost Of Revenue	10,218,000	10,906,000
EBITDA	28,313,000	31,221,000
EBIT	22,314,000	25,810,000
Net Interest Income	182,000	169,000
Interest Expense	562,000	456,000
Interest Income	744,000	625,000
Normalized Income	27,554,200	22,873,965
Net Income From Continuing And Discontinued Operation	26,773,000	22,768,000
Total Expenses	33,439,000	35,148,000
Total Operating Income As Reported	22,872,000	24,745,000
Diluted Average Shares	2,564,000	2,565,000
Basic Average Shares	2,534,000	2,525,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	26,773,000	22,768,000
Net Income Common Stockholders	26,773,000	22,768,000
Net Income	26,773,000	22,768,000
Net Income Including Noncontrolling Interests	26,773,000	22,768,000
Net Income Continuous Operations	26,773,000	22,768,000
Tax Provision	-5,021,000	2,586,000
Pretax Income	21,752,000	25,354,000
Other Income Expense	-1,302,000	440,000
Other Non Operating Income Expenses		558,000	93,000
Gain On Sale Of Security	-1,302,000	-118,000
Net Non Operating Interest Income Expense	182,000	169,000
Total Other Finance Cost		-558,000	-93,000
Interest Expense Non Operating	562,000	456,000
Interest Income Non Operating	744,000	625,000
Operating Income	22,872,000	24,745,000
Operating Expense	23,221,000	24,242,000
Research And Development	17,699,000	17,135,000
Selling General And Administration	5,522,000	7,107,000
Selling And Marketing Expense	2,908,000	3,410,000
General And Administrative Expense	2,614,000	3,697,000
Other Gand A	2,614,000	3,697,000
Gross Profit	46,093,000	48,987,000
Cost Of Revenue	10,218,000	10,906,000
Total Revenue	56,311,000	59,893,000
Operating Revenue	55,426,000	59,093,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	2,538,378	2,529,638
Share Issued	2,538,378	2,529,638
Net Debt	35,322,000	22,871,000
Total Debt	86,769,000	83,897,000
Tangible Book Value	218,933,000	189,017,000
Invested Capital	302,429,000	275,987,000
Working Capital	63,012,000	66,886,000
Net Tangible Assets	218,933,000	189,017,000
Capital Lease Obligations	28,021,000	25,153,000
Common Stock Equity	243,681,000	217,243,000
Total Capitalization	302,429,000	275,987,000
Total Equity Gross Minority Interest	243,681,000	217,243,000
Stockholders Equity	243,681,000	217,243,000
Gains Losses Not Affecting Retained Earnings	-303,000	271,000
Other Equity Adjustments	-303,000	271,000
Retained Earnings	144,647,000	121,179,000
Additional Paid In Capital	99,337,000	95,793,000
Total Liabilities Net Minority Interest	151,569,000	148,778,000
Total Non Current Liabilities Net Minority Interest	104,816,000	106,942,000
Other Non Current Liabilities	3,612,000	4,253,000
Tradeand Other Payables Non Current	16,849,000	21,005,000
Long Term Debt And Capital Lease Obligation	84,355,000	81,684,000
Long Term Capital Lease Obligation	25,607,000	22,940,000
Long Term Debt	58,748,000	58,744,000
Current Liabilities	46,753,000	41,836,000
Other Current Liabilities		10,387,000	6,074,000
Current Debt And Capital Lease Obligation	2,414,000	2,213,000
Current Capital Lease Obligation	2,414,000	2,213,000
Pensionand Other Post Retirement Benefit Plans Current		7,151,000	6,350,000
Payables And Accrued Expenses	44,339,000	22,085,000
Current Accrued Expenses	31,013,000	11,269,000
Payables	13,326,000	10,816,000
Total Tax Payable		1,922,000	3,438,000
Accounts Payable	13,326,000	8,894,000
Total Assets	395,250,000	366,021,000
Total Non Current Assets	285,485,000	257,299,000
Other Non Current Assets	14,283,000	4,745,000
Investments And Advances	28,410,000	27,524,000
Investmentin Financial Assets	28,410,000	27,524,000
Available For Sale Securities	28,410,000	27,524,000
Goodwill And Other Intangible Assets	24,748,000	28,226,000
Other Intangible Assets		3,692,000	915,000
Goodwill	24,748,000	24,534,000
Net PPE	218,044,000	196,804,000
Accumulated Depreciation	-61,491,000	-57,326,000
Gross PPE	279,535,000	254,130,000
Leases	8,209,000	8,346,000
Construction In Progress	61,017,000	50,521,000
Other Properties	147,796,000	136,008,000
Buildings And Improvements	58,836,000	55,568,000
Land And Improvements	3,677,000	3,687,000
Current Assets	109,765,000	108,722,000
Other Current Assets	11,115,000	7,361,000
Receivables	17,470,000	19,769,000
Accounts Receivable	17,470,000	19,769,000
Cash Cash Equivalents And Short Term Investments	81,180,000	81,592,000
Other Short Term Investments	57,754,000	45,719,000
Cash And Cash Equivalents	23,426,000	35,873,000
Cash Equivalents	19,280,000	31,482,000
Cash Financial	4,146,000	4,391,000

Cash Flow

	2026	2025	2024
Free Cash Flow	13,229,000	14,831,000
Repurchase Of Capital Stock	0	0
Repayment Of Debt	-843,000	-754,000
Issuance Of Debt		29,906,000	0
Capital Expenditure	-18,997,000	-21,383,000
Interest Paid Supplemental Data	284,000	93,000
Income Tax Paid Supplemental Data	541,000	1,285,000
End Cash Position	31,102,000	39,100,000
Beginning Cash Position	39,100,000	11,941,000
Effect Of Exchange Rate Changes	7,000	-17,000
Changes In Cash	-8,005,000	27,176,000
Financing Cash Flow	-6,553,000	25,149,000
Cash Flow From Continuing Financing Activities	-6,553,000	25,149,000
Net Other Financing Charges	-4,364,000	-2,665,000
Cash Dividends Paid	-1,346,000	-1,338,000
Common Stock Dividend Paid	-1,346,000	-1,338,000
Net Common Stock Issuance	0	0
Common Stock Payments	0	0
Net Issuance Payments Of Debt	-843,000	29,152,000
Net Long Term Debt Issuance	-843,000	29,152,000
Long Term Debt Payments	-843,000	-754,000
Long Term Debt Issuance		29,906,000	0
Investing Cash Flow	-33,678,000	-34,187,000
Cash Flow From Continuing Investing Activities	-33,678,000	-34,187,000
Net Other Investing Changes	37,000	-405,000
Net Investment Purchase And Sale	-14,346,000	-11,537,000
Sale Of Investment	19,176,000	3,113,000
Purchase Of Investment	-33,522,000	-14,650,000
Net Business Purchase And Sale	-372,000	-862,000
Purchase Of Business	-372,000	-3,416,000
Net PPE Purchase And Sale	-18,997,000	-21,383,000
Purchase Of PPE	-18,997,000	-21,383,000
Operating Cash Flow	32,226,000	36,214,000
Cash Flow From Continuing Operating Activities	32,226,000	36,214,000
Change In Working Capital	-7,759,000	1,664,000
Change In Other Current Liabilities	-5,173,000	-431,000
Change In Other Current Assets	-1,082,000	-272,000
Change In Payables And Accrued Expense	-1,208,000	4,583,000
Change In Accrued Expense	-271,000	3,960,000
Change In Payable	-937,000	623,000
Change In Account Payable	-937,000	623,000
Change In Prepaid Assets	-2,424,000	259,000
Change In Receivables	2,128,000	-2,475,000
Changes In Account Receivables	2,128,000	-2,475,000
Other Non Cash Items	-17,000	37,000
Stock Based Compensation	6,032,000	5,890,000
Unrealized Gain Loss On Investment Securities	1,075,000	-590,000
Asset Impairment Charge			95,000
Deferred Tax	123,000	1,034,000
Deferred Income Tax	123,000	1,034,000
Depreciation Amortization Depletion	5,999,000	5,411,000
Depreciation And Amortization	5,999,000	5,411,000
Net Income From Continuing Operations	26,773,000	22,768,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $42.3B ▲ $56.3B +33.1%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 82.1% ▲ 81.9% -0.3pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 54.1% ▲ 40.6% -13.4pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 39.3% ▲ 47.5% +8.2pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$56.3B/qtr (≈$225.2B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.35x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$13.2B

vs Positive

Operating Cash Flow

$32.2B

Latest quarter · Buffett's cash reality check

ROIC

5.2%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

5.2x

Net Assets: $243.7B

Asset Context — Internet Content & Information

Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry Comparison

Internet Content & Information — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
META	$577.22	$1,465.2B	21.00	81.9%	47.5%	$56.3B
GOOGL Alphabet Inc.	$368.03	$4,490.9B	28.1	60.4%	37.9%	$422.5B
SNAP Snap Inc.	$4.66	$7.7B	N/A	55.8%	-6.7%	$6.1B
PINS Pinterest, Inc.	$20.27	$11.4B	42.2	79.9%	7.6%	$4.4B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.10%

Low — management has little skin in the game

Return on Equity (ROE)

11.0%

Adequate — returns are moderate

Return on Assets (ROA)

6.8%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$26.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+3.4% YoY

Debt is roughly stable

Leadership Team

Mark Elliot Zuckerberg

Founder, Chairman & CEO

Age 41

Pay: $25,125,904

0.094% of net income

Dina Powell McCormick

President & Vice Chairman

Age 51

Pay: $51,243

0.000% of net income

Susan Li

Chief Financial Officer

Age 39

Pay: $3,351,064

0.013% of net income

Javier Olivan

Chief Operating Officer

Age 48

Pay: $6,137,729

0.023% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.69%	168,843,283
Vanguard Capital Management LLC	6.47%	142,138,157
FMR, LLC	5.31%	116,614,753
State Street Corporation	4.03%	88,523,840
Geode Capital Management, LLC	2.47%	54,165,192
JPMORGAN CHASE & CO	2.29%	50,180,811
Capital World Investors	1.87%	41,055,422
Morgan Stanley	1.73%	38,078,962

Risk Analysis

Beta (Market Risk)

1.23

Moderate volatility — moves slightly more than market

Short Interest

1.5% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.36x

Conservative balance sheet — low financial risk

Current Ratio

2.35x

Strong liquidity — Graham approved

52-Week Price Range

Low: $520.26 Current: $577.22 High: $796.25

Currently at 21% of 52-week range

Meta Platforms, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis