$Meta Platforms, Inc.(META)$ just dropped another strong quarter — and it’s more than just a rebound story.
✅ Revenue up 27%
✅ Net income up 35%
✅ Daily active users? A mind-blowing 3.43 billion people across the Meta family (yes, Facebook is very much alive).
🧠 AI is the real story
Meta isn’t just throwing billions at the metaverse — it’s quietly building some of the world’s most powerful AI-driven ad systems. The result?
Ad revenue up 16% to $41.4B (would be +19% FX-neutral)
Family of Apps operating margin rose from 39.9% → 52.6% over 2 years
Advertisers are paying more because targeting is just that good 🎯
💸 CapEx: All-in on AI
2024: $39.2B
2025 forecast: raised to $64–72B (!)
That’s not for VR goggles — it’s going into AI infrastructure: better models, faster data centers, more compute power. Meta’s betting big because demand is real — and paying off.
💰 Buybacks + cash flow
$13.4B in buybacks this quarter
Free cash flow dipped (CapEx effect), but operating cash flow rose nearly 25%
Expect billions in FCF once CapEx normalizes
⚠️ What’s the catch?
EU regulators are challenging Meta’s ad-free subscription model under the DMA. Could impact European numbers by Q3 — but Meta’s fought similar battles before (and usually wins or pays to move on).
📉 P/E still around 23x despite this growth… undervalued?
Is Meta the most “AI-profitable” company right now?
Or are these CapEx bets too aggressive?
👇 Let’s hear your take. Meta bull, bear, or just watching for Amazon next?
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