Meta, by any definition, had a strong third-quarter earnings report Wednesday. Earnings per share blew past analyst expectations, coming in at $7.25 per share versus an estimated $6.69. Revenues, meanwhile, topped $50 billion for the first time ever. Despite that, though, the company's stock is poised to drop by between 8% and 9% when it begins trading Thursday morning. That's likely due to its announcement that capital expenditures more than doubled from the same period last year, hitting $19.4 billion — ...

Group 1 - Global shares dipped as investors remained cautious following a deal announcement between U.S. President Trump and Chinese President Xi Jinping [1][3] - Trump agreed to reduce tariffs on Chinese imports in exchange for China resuming U.S. soybean purchases and addressing the trade of fentanyl [2] - Concerns arose that the truce may be temporary, as previous trade negotiations have faced setbacks [3] Group 2 - Major U.S. tech companies, Microsoft and Meta, reported disappointing earnings, leading to a decline in their stock prices by 2% and 8% respectively [3] - The STOXX 600 index fell by 0.5% amid a heavy day for European earnings [3] Group 3 - The dollar rose against the yen after the Bank of Japan left interest rates unchanged, while it edged lower against most other major currencies [5] - The Federal Reserve's recent interest rate cut and uncertainty about future cuts contributed to fluctuations in Treasury yields and the U.S. dollar [5][7] Group 4 - The yield on the U.S. 10-year Treasury bond rose by 3 basis points to 4.087%, reaching around three-week highs [8]

Core Insights - The main narrative from Meta's quarterly report is not centered on the revenue exceeding expectations or the significant one-time tax charge that adversely affected net income [1] Financial Performance - Meta reported a revenue beat, indicating stronger-than-expected financial performance [1] - A one-time tax charge significantly impacted reported net income, overshadowing other financial metrics [1]

Cleo Capital's Sarah Kunst weighs in on earnings from Microsoft, Meta and Alphabet, plus reports OpenAI is targeting an IPO that could value the company at $1 trillion. ...

So just yesterday on the show we were talking about when is too much capex spending too much basically. Um they raised the guidance when it came to capex spending but not by a lot. I mean the midpoint only went up about two billion.That seems like small potatoes these days. Why do you think investors reacted so sharply to the capex spending or do you think it was more about that charge. >> Well I I think it's probably both.Right. We all remember uh when Zuck was doing the metaverse, the legless metaverse an ...

Market Overview - Major U.S. stock index futures are down, with Dow futures falling by 0.33%, S&P 500 futures down by 0.17%, and Nasdaq futures decreasing by 0.20% [1] - Chinese concept stocks are experiencing a broad decline, with Alibaba down 1.68%, NetEase down 2.13%, Trip.com down 2.22%, JD.com down 1.48%, and Baidu down 2.58% [2] Commodity and Financial Performance - Spot gold prices have risen by 1.91%, reaching $4003.83 per ounce [3] - Google's Q3 earnings exceeded expectations, with revenue of $102.35 billion compared to the expected $99.85 billion, and a net profit increase of 41% to $28.5 billion, leading to a stock increase of 7.19% [4] - Meta's Q3 net profit plummeted by 83% to $2.71 billion, primarily due to a one-time non-cash tax expense of $15.93 billion, resulting in an 8.82% drop in stock price [4] - Microsoft's investment in OpenAI resulted in a $3.1 billion decrease in net income for Q1 FY2026, although net profit rose to $27.7 billion from $24.67 billion, causing a 3.03% decline in stock price [4] - Rare earth stocks are generally rising, with MP Materials up 2.01% and USA Rare Earth up 2.98% [4] - Stellantis reported a Q3 net revenue of €37.2 billion, a 13% year-over-year increase, but warned of potential additional costs in the second half of the year, leading to a 4.46% drop in stock price [4] Upcoming Events - Apple and Amazon are set to release their earnings reports after the market closes on Thursday [5] - The U.S. Q3 annualized GDP rate is scheduled for release on October 30 at 20:30 Beijing time [6]

Meta (META) & Alphabet (GOOGL) Performance - Evercore ISI adjusted price targets, increasing for Alphabet and decreasing for Meta [1] - Both companies demonstrate the ability to leverage AI to enhance core businesses [2] - Meta's increased investment in AGI (super intelligence) caused market hesitation regarding capital expenditure and expense guidance [3] - Google proved it could deploy AI to improve core search business and YouTube, leading to accelerated revenue growth [3] - Meta's ad revenue growth and improved user experience are attributed to AI deployment in Instagram, Facebook, Threads, and WhatsApp [6] - The market is uncertain about Meta's ability to become an AI leader, especially without an external sales product like cloud services [8] - Meta is expected to trade sideways for 3-6 months until it proves its AI leadership [9] Amazon (AMZN) Outlook - Amazon needs to achieve approximately 185% year-over-year AWS growth [10] - Achieving AWS growth comparable to Azure sequentially in dollar terms would positively shift the narrative on Amazon [10]

Meta and Alphabet both reporting quarterly results, but this morning the stocks are going in different directions. Joining us right now to break down the reports is Mark Mahaney. He is Evercore ISI's head of internet research.And uh as a result of what you heard last night, Mark, I I think you changed your price targets, moving it higher for Alphabet and down for for Meta. Did I get that right. >> You did right.That that's right, Becky. So um I think both of these companies are showing that they can deploy ...

Market Overview - Major U.S. stock index futures are down, with Dow futures falling by 0.33%, S&P 500 futures down by 0.17%, and Nasdaq futures decreasing by 0.20% [1] - Chinese concept stocks are experiencing a decline, with Alibaba down by 1.68%, NetEase down by 2.13%, Trip.com down by 2.22%, JD.com down by 1.48%, and Baidu down by 2.58% [1] - Spot gold prices have risen by 1.91%, reaching $4003.83 per ounce [1] Company Earnings Reports - Google's Q3 earnings exceeded expectations, with revenue of $102.35 billion, surpassing analyst estimates of $99.85 billion. Net profit increased by 41% year-over-year to $28.5 billion, and cloud revenue was $15.16 billion, above the expected $14.75 billion. Following the report, Google's stock rose by 7.19% [1] - Meta's Q3 net profit plummeted by 83%, falling from $15.69 billion to $2.71 billion, primarily due to a one-time non-cash tax expense of $15.93 billion from the U.S. tax reform. Revenue grew by 26% to $51.24 billion, but total costs rose by 32%, leading to a decrease in operating profit margin from 43% to 40%. Meta's stock dropped by 8.82% [2] - Microsoft's investment in OpenAI resulted in a $3.1 billion loss, impacting its Q1 FY2026 net income. Despite this, net profit increased from $24.67 billion to $27.7 billion year-over-year. Microsoft's stock fell by 3.03% [2] - Stellantis reported Q3 net revenue of €37.2 billion, a 13% year-over-year increase. However, the company warned of potential additional costs in the second half of the year due to strategic adjustments and product planning changes, leading to a 4.46% drop in its stock [3] Upcoming Earnings - Apple and Amazon are set to release their earnings reports after the market closes on Thursday [4]

Market Overview - Major U.S. index futures are down, with Dow futures falling by 0.33%, S&P 500 futures down by 0.17%, and Nasdaq futures decreasing by 0.20% [1] - Chinese concept stocks are experiencing a decline, with Alibaba down 1.68%, NetEase down 2.13%, Trip.com down 2.22%, JD.com down 1.48%, and Baidu down 2.58% [1] Company Earnings Reports - Google's Q3 earnings exceeded expectations, reporting revenue of $102.35 billion against an analyst forecast of $99.85 billion, with a net profit increase of 41% to $28.5 billion. Cloud revenue reached $15.16 billion, surpassing the expected $14.75 billion, leading to a stock increase of 7.19% [2] - Meta's Q3 earnings showed a revenue growth of 26% to $51.24 billion, but net profit plummeted by 83% to $2.71 billion due to a one-time non-cash tax expense of $15.93 billion, raising the effective tax rate to 87%. Total costs rose by 32% to $30.7 billion, resulting in a decline in operating margin from 43% to 40%. Meta's stock fell by 8.82% [2] - Microsoft's latest earnings report indicated a net income decrease of $3.1 billion due to significant investments in OpenAI, impacting earnings per share by $0.41. However, net profit increased from $24.67 billion to $27.7 billion year-over-year, with a stock decline of 3.03% [3] Sector Performance - Rare earth stocks are generally rising, with MP Materials up by 2.01% and USA Rare Earth up by 2.98% [4] - Stellantis reported a Q3 net revenue of €37.2 billion, a 13% year-over-year increase, but warned of potential additional costs in the second half due to strategic adjustments and product planning changes, leading to a stock drop of 4.46% [4] Upcoming Events - Apple and Amazon are set to release their earnings reports on Thursday after market close [5] - The U.S. Q3 annualized GDP rate is scheduled for release on October 30 at 20:30 Beijing time [6]