What are the investment strengths of Meta Platforms Inc (META)?

Dominant profitability engine: 81.9B operating income TTM with 43% margins funds massive AI investment while generating 44.8B FCF - self-funding transformation Balance sheet optionality: 0.26 debt/equity with 10.2B cash provides M&A firepower and buyback capacity without dilution risk

Meta Platforms Inc

Meta Platforms Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

Operating margin 43.2% TTM vs industry median -2.4% - extraordinary profitability despite 52.4B R&D spend (28% of revenue)[Operating Margin TTM]
CapEx of 62.7B TTM (33% of revenue) building AI/infrastructure moat - consuming 58% of 107.6B operating cash flow[Capital Expenditure TTM]
ROE 32.6% TTM at only 0.26 debt/equity - capital efficiency without leverage dependency[ROE TTM]

Watch Triggers

Capital Expenditure TTM: Exceeds 70B or >35% of revenue — Signals AI arms race escalation compressing FCF and extending payback period
Operating Margin TTM: Falls below 38% — Would indicate R&D/CapEx absorption outpacing revenue growth - thesis invalidation
Free Cash Flow TTM: Drops below 35B — Constrains buybacks and signals investment cycle consuming more cash than expected

Bull Case

Dominant profitability engine: 81.9B operating income TTM with 43% margins funds massive AI investment while generating 44.8B FCF - self-funding transformation

Operating Income TTMOperating Margin TTMFree Cash Flow TTM

Balance sheet optionality: 0.26 debt/equity with 10.2B cash provides M&A firepower and buyback capacity without dilution risk

Debt to EquityCash and EquivalentsNet Debt

Bear Case

CapEx intensity risk: 62.7B annual spend (33% of revenue) may not generate proportional returns if AI monetization disappoints or competition catches up

Capital Expenditure TTMPPE

Valuation stretched: P/E 29.5x vs industry median 16x and P/S 9.1x vs median 1.4x prices in flawless execution

PE RatioPS Ratio

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

62%

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Forward Thesis

AI infrastructure investment positions META for margin expansion as CapEx intensity normalizes

1-3ymed

62.7B CapEx building proprietary AI compute capacity
R&D at 52.4B developing monetizable AI features
Operating leverage on 189.5B revenue base

Operating margin 43.2% despite heavy investmentFCF 44.8B TTM positive through build cyclePPE at 177.6B - infrastructure already scaling

Valuation Context

Caveats

Public Strategies Rankings

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META Fundamentals

Information → Other Information Services

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$1.67T		—
Enterprise Value	$1.71T		—
P/E Ratio	29		—
Total Revenue - TTM	$189.46B	+21.3%	—
Earnings Per Share (diluted) - TTM	$22.58	+5.9%	—
Operating Margin - TTM	43.2%	+3.3%	—
Net Margin - TTM	30.9%	-4.7%	—
Free Cash Flow - TTM	$44.84B	-13.9%	—
Return on Common Equity - TTM	0.33	-3.5%	—
Beta 5Y (Monthly)	unknown		—

META Dividend History

8 dividends

12/23/25$0.5250

09/29/25$0.5250

06/26/25$0.5250

03/26/25$0.5250

12/27/24$0.5000

09/26/24$0.5000

06/26/24$0.5000

03/26/24$0.5000

META Stock Splits

No stock splits

META SEC Filings

Filing Date	Report Date	Report Type	Filing Link
10/30/25	09/30/25	10-Q	0001628280-25-047240
07/31/25	06/30/25	10-Q	0001628280-25-036791
05/01/25	03/31/25	10-Q	0001326801-25-000054
01/30/25	12/31/24	10-K	0001326801-25-000017
10/31/24	09/30/24	10-Q	0001326801-24-000081
08/01/24	06/30/24	10-Q	0001326801-24-000069
04/25/24	03/31/24	10-Q	0001326801-24-000049
02/02/24	12/31/23	10-K	0001326801-24-000012
10/26/23	09/30/23	10-Q	0001326801-23-000103
07/27/23	06/30/23	10-Q	0001326801-23-000093
04/27/23	03/31/23	10-Q	0001326801-23-000067
02/02/23	12/31/22	10-K	0001326801-23-000013
10/27/22	09/30/22	10-Q	0001326801-22-000108
07/28/22	06/30/22	10-Q	0001326801-22-000082
04/28/22	03/31/22	10-Q	0001326801-22-000057
02/03/22	12/31/21	10-K	0001326801-22-000018
10/26/21	09/30/21	10-Q	0001326801-21-000065
07/29/21	06/30/21	10-Q	0001326801-21-000049
04/29/21	03/31/21	10-Q	0001326801-21-000033
01/28/21	12/31/20	10-K	0001326801-21-000014
10/30/20	09/30/20	10-Q	0001326801-20-000084
07/31/20	06/30/20	10-Q	0001326801-20-000076
04/30/20	03/31/20	10-Q	0001326801-20-000048
01/30/20	12/31/19	10-K	0001326801-20-000013
10/31/19	09/30/19	10-Q	0001326801-19-000069
07/25/19	06/30/19	10-Q	0001326801-19-000055
04/25/19	03/31/19	10-Q	0001326801-19-000037
01/31/19	12/31/18	10-K	0001326801-19-000009
10/31/18	09/30/18	10-Q	0001326801-18-000067
07/26/18	06/30/18	10-Q	0001326801-18-000057
04/26/18	03/31/18	10-Q	0001326801-18-000032
02/01/18	12/31/17	10-K	0001326801-18-000009
11/02/17	09/30/17	10-Q	0001326801-17-000053
07/27/17	06/30/17	10-Q	0001326801-17-000038
05/04/17	03/31/17	10-Q	0001326801-17-000024
02/03/17	12/31/16	10-K	0001326801-17-000007
11/03/16	09/30/16	10-Q	0001326801-16-000087
07/28/16	06/30/16	10-Q	0001326801-16-000082
04/28/16	03/31/16	10-Q	0001326801-16-000067
01/28/16	12/31/15	10-K	0001326801-16-000043
11/05/15	09/30/15	10-Q	0001326801-15-000032
07/31/15	06/30/15	10-Q	0001326801-15-000028
04/23/15	03/31/15	10-Q	0001326801-15-000015
01/29/15	12/31/14	10-K	0001326801-15-000006
10/30/14	09/30/14	10-Q	0001326801-14-000068
07/24/14	06/30/14	10-Q	0001326801-14-000032
04/25/14	03/31/14	10-Q	0001326801-14-000023
01/31/14	12/31/13	10-K	0001326801-14-000007
11/01/13	09/30/13	10-Q	0001326801-13-000031
07/25/13	06/30/13	10-Q	0001326801-13-000019
05/02/13	03/31/13	10-Q	0001326801-13-000011
02/01/13	12/31/12	10-K	0001326801-13-000003
10/24/12	09/30/12	10-Q	0001326801-12-000006
07/31/12	06/30/12	10-Q	0001193125-12-325997
05/18/12	03/31/12	424B4	0001193125-12-240111
05/18/12	12/31/11	424B4	0001193125-12-240111
10/24/12	09/30/11	10-Q	0001326801-12-000006
07/31/12	06/30/11	10-Q	0001193125-12-325997
05/18/12	03/31/11	424B4	0001193125-12-240111