Meta loses 1% premarket, trading at $731.16

Meta loses 1% premarket, trading at $731.16

Meta Platforms Inc. (META) opened trading on September 2, 2025, at $731.16, a 1% decline from the previous close. The stock's performance reflects a broader market trend and investor sentiment towards the company's aggressive capital expenditures and growth strategies.

Meta Platforms has been investing heavily in data centers and network infrastructure. In the second quarter of 2025, the company spent $17 billion, and it expects to spend between $66 billion and $72 billion in 2025 to support core business and AI efforts [1]. The company's focus on AI-optimized data centers, which prioritize resource efficiency, is a significant part of its growth strategy.

Meta's data center in Kansas City, MO, is operational and uses 100% clean and renewable energy. The company has also announced plans to build its largest data center in Richland Parish, LA, which could cost $50 billion [1]. These investments align with Meta's broader goal of reducing its carbon footprint and leveraging AI to optimize resource use.

Meta faces intense competition from Microsoft and Amazon in the AI-data center space. Microsoft's capital expenditures for AI infrastructure reached $30 billion in the first quarter of fiscal 2026, while Amazon expects to spend more than $100 billion in 2025 [1]. Despite the competition, Meta's share price has outperformed the broader Zacks Computer and Technology sector, with a year-to-date return of 26.2% compared to 12.9% [1].

Institutional investors have also shown interest in Meta. Point72 Italy S.r.l. held approximately $2 million worth of Meta stock at the end of the first quarter, making it the firm's 18th largest investment [2]. Several analysts have issued reports on Meta, with varying ratings and target prices. Zacks Research lowered its rating to a "hold," while UBS Group, Hsbc Global Res, Raymond James Financial, and Scotiabank raised their target prices and ratings [2].

Meta's recent earnings report showed strong performance, with earnings per share (EPS) of $7.14, exceeding analysts' consensus estimates of $5.75 [2]. The company's revenue was up 21.6% year-over-year, and it set its Q3 2025 guidance at EPS. Research analysts predict that Meta will post 26.7 EPS for the current year [2].

Despite the positive indicators, Meta's stock has seen some insider selling. Jennifer Newstead and COO Javier Olivan sold shares of the company's stock in recent transactions, representing a 1.58% and 3.94% decrease in their positions, respectively [2].

In conclusion, Meta Platforms' stock performance reflects a mix of positive fundamentals, including strong earnings and aggressive capital expenditures, and competitive pressures in the AI-data center space. Investors should continue to monitor the company's progress in these areas and the broader market trends that may impact its stock price.

References:
[1] https://www.nasdaq.com/articles/can-metas-focus-ai-optimized-data-centers-push-stock-higher
[2] https://www.marketbeat.com/instant-alerts/filing-point72-italy-srl-has-2-million-stock-position-in-meta-platforms-inc-meta-2025-08-31/