From 24/7 Wall St. · Vandita Jadeja · · 1m
Meta Capital Raise Spooking Investors
Meta's new share class and negative free cash flow trigger investor sell-off as price targets rise to $784.17.
In brief
Meta's new share class and negative free cash flow trigger investor sell-off as price targets rise to $784.17. Meta's negative free cash flow and new share class caused a 12.76% stock drop, but analysts see $784.17 price target with 20.85% upside. Originally reported by 24/7 Wall St..
Meta Earnings Report
Meta reported negative free cash flow and a new non-voting share class for capital raising.
Stock Drop After Report
Meta shares fell 12.76% over the past week, down 2.39% year to date.
Price Target Update
24/7 Wall St. price target for Meta stands at $784.17 with 20.85% upside from current price.
Negative Free Cash Flow
Free cash flow came in at negative $2.12 billion, causing significant selling pressure.
Bull Case for Meta
Piper Sandler raised target to $875 from $785, with potential $848.45 upside if AI monetization grows.
Bear Case Risks
Debt of $83.7 billion tops cash of $82.4 billion, with operating margin falling to 20% from 40%.
The big picture
Meta's negative free cash flow and new share class caused a 12.76% stock drop, but analysts see $784.17 price target with 20.85% upside.
