Meta Platforms Inc

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Meta Platforms, Inc (NASDAQ: META) develops technologies that facilitate social connection, community building, and business growth. Its products allow users to interact and share with friends and family via mobile devices, computers, virtual and mixed reality headsets, and wearable technology. The company operates through two main segments: Family of Apps (FoA) and Reality Labs (RL).

Kalkine’s Low Carbon Research Report covers the Investment Highlights, Low Carbon Emission Initiatives, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Stock Performance:

• META experienced a strong uptrend from mid-2024 through February 2025, peaking above $700. From March 2025, the stock entered a correction phase, falling below both moving averages.
• Meta’s Current is RSI: 59.56 which is below the overbought threshold (70) and above neutral (50), indicating moderate bullish momentum.
• The 21-day simple moving average (SMA), currently at $533.29, has been surpassed by the stock price, indicating a return of short-term bullish momentum. Additionally, the price has just broken above the 50-day SMA, which sits at $583.41, signaling a potentially positive shift in the medium-term trend and suggesting the early stages of a trend reversal.

1.2 Why do Low Carbon Emissions matter?

The shift toward a low-carbon economy is one of the most significant challenges of current time, spurred by the urgent need to combat climate change and reduce the environmental impact of corporate activities. This report covers the US-listed low-carbon emission company (NYSE: ATR), that is committed to sustainability and responsible environmental practices.

Carbon and Waste Management - Key Metrics

Between 2019 and 2023, Meta's CO₂ emissions per million dollars in revenue increased from 27.29 to 38.47, indicating a rising carbon intensity. In contrast, water use per million in revenue steadily declined from 48.52 to 39.1, reflecting improved water efficiency despite revenue and operational growth.

Peer Comparison: Carbon Emission and Waste Management Metrics

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~34.40% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc. and Fidelity Management & Research Company LLC are the biggest shareholders, holding the maximum stake in the company at 8.72% and 6.05%, respectively.

1.4 Key Metrics

The graph compares Meta's financial performance between Q1 FY25 and Q1 FY24. Margins across key indicators have improved, including EBITDA margin (50.7% vs. 47.8%), operating margin (41.5% vs. 37.9%), and income before tax margin (43.4% vs. 38.9%). Notably, the income tax rate decreased significantly from 12.8% to 5.5%, boosting the net margin from 33.9% to 41.0%. Returns on equity, assets, and invested capital also rose, highlighting enhanced efficiency and profitability. These improvements suggest robust financial health and better resource utilization in Q1 FY25 compared to the previous year.

Section 2: Business Updates and Corporate Business Highlights

2.1 Insights of FY24:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• META experienced a strong uptrend from mid-2024 through February 2025, peaking above $700. From March 2025, the stock entered a correction phase, falling below both moving averages.
• Meta’s Current is RSI: 59.56 which is below the overbought threshold (70) and above neutral (50), indicating moderate bullish momentum.
• The 21-day simple moving average (SMA), currently at $533.29, has been surpassed by the stock price, indicating a return of short-term bullish momentum. Additionally, the price has just broken above the 50-day SMA, which sits at $583.41, signaling a potentially positive shift in the medium-term trend and suggesting the early stages of a trend reversal.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 02, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.