Core Insights - Meta Platforms Inc is set to report its third-quarter earnings on October 29, with expected earnings of $6.61 per share, reflecting a 9.6% increase year-over-year, and projected revenue of $49.45 billion [1] Group 1: Earnings and Financial Performance - The anticipated earnings per share of $6.61 represents a 9.6% increase from the same quarter last year [1] - Revenue expectations for the quarter stand at $49.45 billion [1] Group 2: AI Developments - Meta's AI spending will be a focal point this quarter, highlighted by the announcement of 600 job cuts within its AI unit [2] - CEO Mark Zuckerberg appointed Vishal Shah to a significant AI-related position, indicating a strategic shift within the AI division [2] Group 3: Stock Performance and Market Reactions - Meta has shown a pattern of strong post-earnings performance, with the stock finishing higher after its last three quarterly reports, including an 11.4% increase following the July report [3] - The options market is pricing in a 9.9% potential swing in stock price following the earnings announcement, which is larger than the average 7.6% move over the past two years [3] - As of the latest trading, Meta's stock is up 0.7% at $755.84, aiming for its eighth consecutive win, with recent support found at the 120-day moving average [4]

Market Overview - US stocks experienced mixed results last week, with the S&P 500 and Nasdaq Composite rising slightly over 1.6%, while the Dow increased by 2% [2] - Both the DJIA and S&P 500 reached record levels on Friday, influenced by Q3 earnings season, dovish Federal Reserve commentary, and better-than-expected inflation data [2][12] Earnings Season Insights - The second week of Q3 earnings season showed mixed results, with initial strong performances from big banks followed by disappointing reports from regional banks and major tech companies [3] - High-profile disappointments included Tesla, which saw profits drop 37% year-over-year despite beating revenue expectations, leading to a 4% stock drop [4] - IBM reported better-than-expected earnings but showed slowing growth in its core cloud services, facing stiff competition from AWS, Microsoft Azure, and Google Cloud [4] - Netflix missed earnings estimates due to a tax dispute, despite having a successful film, resulting in a 5% stock decline [4] Positive Earnings Reports - Honeywell exceeded analyst expectations due to strength in its aerospace division, resulting in a 4% stock increase [5] - American Airlines reported better-than-expected results driven by travel demand and provided strong guidance for Q4 and the full year [5] - Intel reported strong earnings driven by AI chip demand, leading to a 3% stock gain for the week [5] - The blended EPS growth rate for the S&P 500 increased to 9.2%, up from 8.5% the previous week, marking the ninth consecutive quarter of growth [5] Job Market Trends - Initial jobless claims rose to approximately 227,000, indicating an upward trend in unemployment applications [6] - Major corporations announced workforce reductions, including Meta (600 layoffs), Rivian (over 600 layoffs), and Target (1,800 corporate jobs) [6] - GM laid off over 200 employees, while Amazon plans to replace over half a million jobs with robots in the next seven years [6][14] Upcoming Earnings Reports - The upcoming week is expected to be significant for the Q3 earnings season, with major companies like Microsoft, Meta, Alphabet, Apple, and Amazon reporting [7][8] - The "Magnificent 7" companies are anticipated to have a substantial impact on overall market growth, with expected YoY EPS growth of 14.9% compared to 6.7% for the rest of the S&P 500 [7] Conclusion - Despite mixed corporate earnings signals and layoff news, the market closed at record highs, driven by favorable inflation data [12] - The focus will shift back to corporate fundamentals as the "Magnificent 7" prepare to report, which will be crucial for sustaining market growth [12]

Core Viewpoint - Meta Platforms Inc is expected to deliver a strong quarter driven by its advertising technology and AI infrastructure, despite a significant planned expenditure of $100 billion by 2026 for data centers and AI capabilities [1][2]. Financial Performance - Meta's projected revenue for the third quarter of 2025 is $49.4 billion, reflecting a 22% year-over-year increase, with earnings per share (EPS) expected to be $6.69, aligning with Wall Street consensus [5]. - Revenue growth is anticipated to moderate to 18% year-over-year in the fourth quarter [5]. Investment and Growth Strategy - The company is making substantial investments in AI infrastructure and advertising technology, which are seen as key growth drivers, with a sustained revenue growth trajectory in the high teens to low 20% range [2][4]. - Meta secured $22 billion in third-party financing for its 5-gigawatt Hyperion data center in Louisiana, which is viewed as a strategic move to enhance its capital outlook and support long-term expansion [3]. Market Position and Outlook - Despite concerns regarding consumer spending, Meta and Alphabet are considered well-positioned among large-cap tech companies for the current earnings season [4]. - The digital advertising market remains resilient, bolstered by trends towards programmatic advertising, connected TV, and generative AI tools [3]. Capital Expenditure - Meta plans to allocate $66–$72 billion in capital expenditures for 2025, representing a more than 70% increase from 2024, with total spending potentially reaching $100 billion by 2026 [5]. - Free cash flow is projected to decline from $52.1 billion in 2024 to $40.4 billion in 2025 and further to $32.2 billion in 2026 [5].

Core Insights - Investors are overly enthusiastic about artificial intelligence, with OpenAI CEO Sam Altman warning that this excitement may lead to potential losses as the hype diminishes [2][4] - Major technology companies are projected to spend approximately $320 billion this year on AI infrastructure, indicating a significant commitment to the sector [1][4] Company Investments - Microsoft plans to invest around $80 billion in AI-enabled data centers in 2023, marking its largest infrastructure budget to date [3] - Amazon, Meta Platforms, and Alphabet are also increasing their capital expenditures, with Amazon focusing on scaling its cloud infrastructure for AI services [3][4] - Meta's capital expenditures are estimated between $66 billion and $72 billion, while Alphabet continues to invest heavily in data-center infrastructure [4] Industry Trends - OpenAI is expanding its offerings, recently introducing new tools for developers to integrate ChatGPT into applications, emphasizing enterprise adoption [5] - Analysts are divided on the AI market's sustainability, with some believing it will drive a tech bull market for the next two to three years, likening the current phase to 1996 rather than 1999 [5]

As Denzel Washington might say, “There are two kinds of analysis in this world. Analysis that hurts. Analysis that alters.” Today, we’ll be looking at the latter. Meta Platforms (META) will be releasing its third-quarter earnings report on Wednesday after the closing bell. Analysts anticipate adjusted earnings per share to land at $6.66 on revenue of $49.41 billion. While there have been some patchy performances in 2022 and 2023, for the most part, Meta has been firing on all cylinders. More News from Ba ...

Core Insights - Temenos, a banking software company, raised its 2025 outlook and reported third quarter earnings that exceeded market expectations [1] Financial Performance - The company reported third quarter earnings that were ahead of market expectations [1] Strategic Developments - Temenos is currently in the process of searching for a new chief executive [1]

Core Points - A Dutch court has mandated Meta Platforms to simplify the process for Facebook and Instagram users to opt out of algorithmically curated timelines by the end of the year [1] Group 1 - The court ruling emphasizes the need for user-friendly options regarding algorithmic content curation on Meta's platforms [1] - This decision reflects growing regulatory scrutiny over social media companies and their content management practices [1] - Meta is required to comply with the ruling, which may impact user engagement and advertising strategies [1]

I guess I'm just wondering why why why are you playing here and why are you competing here. Meta obviously is a market leader here with the Ray-B bands and there's rumors that Apple is going to come after that. So So why Snap.>> Well, 11 years ago we invented all sorts of things that really changed the way that people use their phones and we think made technology a lot more human. Whether that was opening to the camera instead of a feed, whether it was ephemeral messaging to make conversations feel much mor ...

Core Insights - Meta Platforms is set to report its Q3 earnings on October 29, 2025, with expectations of strong performance driven by significant investments in AI [1][6] - The company has a solid track record of beating Wall Street expectations, having outperformed estimates for eleven consecutive quarters [7][8] Financial Performance - Year-to-date, META shares have gained approximately 26% in 2025, and nearly 200% over the past five years [2] - Zacks Consensus estimates project Q3 revenue of $49.45 billion and EPS of 6.61, reflecting a year-over-year EPS growth of 9.62% [3][5] - The average post-earnings move for META has been 5.28%, with the options market implying a potential move of +/- 7.1% following the upcoming earnings report [2] Sales and Earnings Estimates - Current quarter (Q3 2025) sales estimates range from a low of $48.98 billion to a high of $50.97 billion, with a year-over-year growth estimate of 21.83% [4] - For the current year (2025), total sales are expected to reach $196.14 billion, with a growth estimate of 19.23% [4] Capital Expenditure and AI Investments - Meta is projected to spend approximately $70 billion on capital expenditures (CAPEX) in 2025, with expectations for this to increase to $100 billion in 2026 as the company invests heavily in AI infrastructure [10][12] - The effectiveness of these AI investments is a key focus for investors, particularly regarding their impact on advertising revenue and user engagement [12][13] Key Drivers to Watch - Advertising revenue remains the most critical metric for Meta, as it constitutes the majority of the company's earnings [12] - Investors will be monitoring CAPEX spending to ensure it does not adversely affect free cash flow and margins [13] - The impact of AI on user engagement, especially through features like Instagram Reels, is another important trend to observe [13]

Key Takeaways META is on the reporting docket this week. Ad results will be key. Shares have outperformed the S&P 500 YTD. It’s an action-packed week concerning earnings, with the reporting docket dominated by several Mag 7 members.Among the bunch is beloved Meta Platforms (META) , whose shares have outperformed nicely in 2025, gaining 26% compared to the S&P 500’s 18% gain. The stock also sports a favorable Zacks Rank #2 (Buy), with near-term EPS expectations remaining bullish.  Image Source: Zacks Investm ...