The Motley Fool·16h ago
Better Stock Split to Buy: Meta Platforms vs. SandiskMeta's new share class doesn't have voting power. Sandisk is seeing huge demand from the AI build-out.
Meta's revenue momentum remains robust, with Q2 2026 growth of 28% YoY to $60.8B, but the company is in a heavy AI investment phase, as evidenced by R&D up 68% YoY and capex reaching 49.5% of revenue.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue accelerated 28% YoY to $60.8B in Q2 2026, but operating margin compressed to 30.9% from 43.0% a year earlier as R&D surged 68% YoY to $21.7B, reflecting the AI investment phase.
Meta's investments in AI infrastructure, including MTIA chips, are expected to generate significant ad revenue and save billions annually.
The advertising business is projected to rebound, leveraging AI-powered targeting and automation, supported by Meta's vast user base.
Meta's management anticipates operating income in 2026 will surpass 2025 levels, driven by custom AI chips and potential workforce reductions.
Meta's CapEx for 2026 is projected at $125 billion to $145 billion, raising concerns about the returns on such massive spending.
There is a risk that AI investments may take longer to yield returns, with no historical precedent for the scale of spending.
Ongoing regulatory scrutiny and lawsuits could materially impact Meta's financial performance.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 21, 2026 | $7.40+13.1% vs $6.54 | $64.6B+2.0% vs $63.3B |
Q3 2026 Jul 29, 2026 | $6.18-14.0% vs $7.19 | $60.8B+1.0% vs $60.2B |
Q2 2026 Apr 29, 2026 | $10.44+55.8% vs $6.70 | $56.3B+1.4% vs $55.6B |
Q1 2026 Jan 28, 2026 | $8.88+8.4% vs $8.19 | $59.9B+2.7% vs $58.3B |
Meta's new share class doesn't have voting power. Sandisk is seeing huge demand from the AI build-out.
Artificial intelligence (AI) stocks are plunging following the results of the midterm elections.
Meta recently launched its Muse agents — a new generation of cuddly agentic helpers. Now, the company has launched Spaces, a new way to communicate and collaborate with them.
Meta stock sits nearly $100 below its recent peak, and the gap between a modest recovery and a five-year windfall is wider than most investors expect. Here is exactly what a $1,000 stake could look like across six distinct scenarios.
Benchmark META against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Meta Platforms, Inc. (META)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $610.15 | $1.55T | 25.97 | 22.17% | 30.08% | 30.24% | 0.34% | |
| $284.78 | $3.45T | 26.34 | 15.13% | 50.03% | 42.62% | 0.29% | |
| $4.96 | $8.34B | -18.37 | 10.63% | -4.9% | -14.61% | — | |
| $18.96 | $12.06B | 31.08 | 15.79% | 3.81% | 5.25% | — | |
| $95.10 | $18.31B | 36.30 | 69.4% | 32.11% | 30.57% | — | |
| $39.03 | $9.1B | 16.40 | 0.22% | 20.69% | — | 1.82% |
Meta Platforms, Inc. (META) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Meta Platforms, Inc. (META) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 21, 2026·SEC
Jul 29, 2026·SEC
May 29, 2026·SEC
Jan 29, 2026·SEC
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Meta Platforms, Inc. (META) stock FAQ — growth, dividends, profitability & financials explained
Meta Platforms, Inc. (META) reported $241.61B in revenue over the trailing twelve months. Revenue was $200.97B in fiscal year 2025. That is 10081% more than the $1.97B of fiscal year 2010.
Meta Platforms, Inc. (META) grew revenue by 22.2% in fiscal year 2025, compared with the prior fiscal year.
Yes. Meta Platforms, Inc. (META) earned $75.25B in net income over the trailing twelve months (a 31.1% net margin).
Yes. Meta Platforms, Inc. (META) pays a dividend that yields 0.34% at the current price, a small yield.
Meta Platforms, Inc. (META) had a return on equity (ROE) of 30.2% in fiscal year 2025. That is well above the market's typical 10-15%.
Meta Platforms, Inc. (META) generated $28.65B in free cash flow over the trailing twelve months.
