Group 1: Alphabet (Google) - Q3 revenue exceeded estimates at $102.35 billion, surpassing the expected $100 billion [1] - YouTube ad revenue and overall Google ad revenue performed better than expected, contributing to strong top-line growth [1][2] - Operating income fell short of expectations, reflecting challenges such as the EU antitrust fine [2] - The cloud business showed significant growth, with revenue increasing by 15.16%, beating the street estimate of 14.75% [6] - Analysts remain bullish on Alphabet, with price targets reaching up to $300 per share, driven by optimism around AI and cloud services [4][40] Group 2: Meta - Meta's Q4 revenue forecast is between $56 billion to $59 billion, aligning closely with expectations [15] - The company reported a significant non-cash tax charge of nearly $16 billion, impacting EPS [21] - Despite a strong ad revenue performance of $50.08 billion, which beat expectations, the stock saw a decline due to concerns over expenses and tax impacts [17][25] - Meta's capex guidance for the full year increased to between $70 billion to $72 billion, raising investor concerns about spending efficiency [26][28] - Analysts expect continued strong revenue growth, with a forecast of 20% ad growth for Q4 [32] Group 3: Microsoft - Microsoft reported strong earnings, beating both top and bottom line expectations, with cloud revenue also exceeding estimates [20][22] - Despite positive results, shares fell approximately 4% in after-hours trading, attributed to a perceived disconnect between performance and market expectations [21][14] - The company is heavily invested in AI infrastructure, which is expected to drive future growth [11][12] Group 4: Digital Advertising Market - The digital ad market remains robust, with major platforms like Google and Meta expected to continue gaining momentum [46] - Smaller players in the advertising space are struggling, indicating a potential consolidation trend [46] - Analysts anticipate strong results from Amazon's advertising segment, reflecting overall positive sentiment in the digital ad market [46]

Meta Platforms (NasdaqGS:META) Q3 2025 Earnings Call October 29, 2025 04:30 PM ET Company ParticipantsMark Zuckerberg - CEOKenneth Dorell - Director of Investor RelationsSusan Li - CFOConference Call ParticipantsDoug Anmuth - AnalystEric Sheridan - AnalystRoss Sandler - AnalystJustin Post - AnalystBrian Nowak - AnalystYoussef Squali - AnalystKen Gawrelski - AnalystMark Shmulik - AnalystRonald Josey - AnalystMark Mahaney - AnalystOperatorGood afternoon. My name is Krista, and I will be your conference operat ...

Financial Data and Key Metrics Changes - Q3 total revenue reached $51.2 billion, up 26% year over year, with family of apps revenue at $50.8 billion, also up 26% [13][14] - Q3 operating income was $20.5 billion, representing a 40% operating margin [15] - Net income was $2.7 billion, or $1.05 per share, with a one-time tax charge impacting the tax rate, which was 87% [16] Business Line Data and Key Metrics Changes - Family of apps ad revenue was $50.1 billion, up 26%, with a 14% increase in ad impressions served [13][14] - Reality Labs segment revenue was $470 million, up 74% year over year, driven by Quest headset sales and AI glasses [14] - Average price per ad increased by 10% year over year, benefiting from improved ad performance [13] Market Data and Key Metrics Changes - Over 3.5 billion people used at least one Meta app daily, with Instagram reaching 3 billion monthly active users [3][13] - Video time spent on Instagram increased by over 30% since last year, with Reels achieving an annual run rate of over $50 billion [6][7] Company Strategy and Development Direction - The company aims to establish itself as a leading AI lab, focusing on building personal superintelligence and enhancing app experiences [3][4] - There is a strong emphasis on advancing AI recommendation systems to improve user engagement and ad performance [6][8] - The company is investing heavily in infrastructure to support AI initiatives, with capital expenditures expected to grow significantly [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of ad revenue and user engagement, driven by ongoing improvements in recommendation systems [17][18] - The company anticipates a reduction in Reality Labs revenue in Q4 due to the timing of headset sales [29] - Future investments will focus on AI capabilities and infrastructure to meet expanding compute needs [32] Other Important Information - The company ended Q3 with $44.4 billion in cash and marketable securities, and $28.8 billion in debt [17] - The tax rate for Q4 is expected to be between 12% to 15% [30] Q&A Session Summary Question: Insights on core improvements and CapEx - Management highlighted that growth in CapEx for 2026 is driven by needs in Meta Superintelligence Labs and core AI, with strong year-over-year growth in value-weighted conversion rates [37][39] Question: Reality Labs revenue headwind - Management noted that Q4 Reality Labs revenue is expected to be lower due to the absence of new headset launches and the timing of sales [40][41] Question: CapEx and expense growth impact on earnings - Management is in the process of budgeting for 2026, emphasizing the need for capacity to support AI initiatives and core business growth [44][45] Question: Consumer interaction with Meta AI - Management reported over a billion monthly users of Meta AI, with improvements in model quality leading to increased usage [54][55] Question: Adoption rates of automation tools - Management discussed the successful rollout of Advantage Plus, which automates campaign setup and optimizes ad performance [84]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $51.2 billion, up 26% year over year, with a constant currency growth of 25% [13][15] - Family of apps revenue reached $50.8 billion, also up 26% year over year, with ad revenue contributing $50.1 billion, reflecting a 26% increase [13][14] - Operating income was $20.5 billion, resulting in a 40% operating margin [16] - Net income was reported at $2.7 billion, or $1.05 per share, with a potential adjusted net income of $18.6 billion or $7.25 per share excluding a one-time tax charge [17] - Total expenses increased by 32% year over year to $30.7 billion, driven by legal expenses, employee compensation, and infrastructure costs [15][16] Business Line Data and Key Metrics Changes - Reality Labs segment revenue was $470 million, up 74% year over year, attributed to increased sales of Quest headsets and AI glasses [14] - Other revenue from the family of apps, including WhatsApp paid messaging and Meta verified subscriptions, grew by 59% to $690 million [14] - The annual run rate for video content on Instagram Reels surpassed $50 billion, with video time spent on Instagram increasing by over 30% since last year [6][14] Market Data and Key Metrics Changes - Daily active users across Meta's family of apps reached 3.5 billion, with Instagram achieving 3 billion monthly active users [3][13] - Threads app saw a significant increase, surpassing 150 million daily active users [3] - Engagement on Facebook increased by 5% and 10% on Threads due to improved AI recommendation systems [5][19] Company Strategy and Development Direction - The company aims to establish itself as a leading AI lab, focusing on building personal superintelligence and enhancing app experiences [3][4] - There is a strong emphasis on advancing open-source AI, which is expected to benefit the entire ecosystem [3] - The strategy includes front-loading capacity for AI development to prepare for potential rapid advancements in superintelligence [4][5] - The company is also focused on integrating AI into its advertising systems to improve performance and efficiency [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in AI and its applications across existing and new products [11][32] - The company anticipates continued strong ad revenue growth, although Reality Labs revenue is expected to decline in Q4 due to last year's product launch timing [30][34] - There are concerns regarding legal and regulatory challenges, particularly in the EU and U.S., which could impact future revenue [34] Other Important Information - Capital expenditures for 2025 are projected to be between $70 to $72 billion, reflecting increased investments in infrastructure and AI capabilities [31][33] - The company ended Q3 with $44.4 billion in cash and marketable securities, indicating a strong financial position [18] Q&A Session Summary Question: Can you provide insights on the early quantifiable signals from A/B tests regarding core improvements for 2026? - Management highlighted strong year-over-year growth in value-weighted conversion rates, indicating confidence in the return on investment from capital expenditures [38][40] Question: What is the expected Reality Labs revenue headwind in Q4? - Management noted that Q4 Reality Labs revenue is expected to be lower than last year due to the timing of product launches and inventory management [41] Question: How does the company plan to balance CapEx growth with core business growth and free cash flow? - The focus is on ensuring sufficient compute capacity for AI research and core business needs, with flexibility for future growth [44][46] Question: What signals are being observed regarding consumer interaction with Meta AI? - Over a billion monthly users are engaging with Meta AI, with increased usage correlating with model improvements [53][55] Question: How is the company approaching the monetization path for Meta AI? - Management is optimistic about improving engagement and monetization through enhanced AI capabilities and automation for advertisers [74][76]

Meta pays more in monetization than X.More than double.The Kobeissi Letter (@KobeissiLetter):BREAKING: Meta stock, $META, falls nearly -10% after missing Q3 2025 earnings expectations due to a $15.9 billion one-time expense. https://t.co/J3fyx8lE3w ...

Joining us now is Gil Lauria from DA Davidson. Gil, is this Meta thing really that bad. I mean, 8%, eight and a half seems like a lot to take off the top.Not at all. Meta reported a great quarter. In fact, all three of these mega caps reported fantastic quarters that tell us how well we're doing.If we're to distill the signal from the noise, I'll focus on four numbers. Microsoft Azure 39% from 37 last quarter. Google Cloud 34% growth on 32% last quarter.They grew ads 15% from 12% last quarter. Meta grew ads ...

Core Insights - Meta Platforms Inc. recorded a nearly $16 billion one-time charge in Q3, significantly impacting its earnings, with reported net income at $2.71 billion instead of an adjusted $18.64 billion without the charge [1] - Following the announcement, Meta's shares fell approximately 6% in after-hours trading [1] Capital Expenditure - Meta raised its full-year capital expenditure forecast to $70–72 billion from a previous range of $66–72 billion, with expectations for notably larger spending in 2026 [2] - The company plans to invest aggressively in infrastructure to meet expanding compute needs, both through building its own facilities and contracting with third-party cloud providers [2] Rising Costs - Employee compensation costs, particularly for AI hires, are expected to be the second-largest contributor to rising expenses [3] - Despite recent job cuts of around 600 in the AI division to streamline operations, Meta's investments in AI infrastructure are increasing, leading to short-term cost pressures [5][6] AI Initiatives - Meta is focused on artificial intelligence, aiming for superintelligence, and has reorganized its AI initiatives under a new unit called Superintelligence Labs [4] - The company has committed to spending hundreds of billions to develop advanced AI infrastructure, including a recent $27 billion financing deal for a data center project in Louisiana [5] Advertising Strategy - Meta leverages its 3.2 billion daily active users to enhance ad revenue through an AI-optimized ad platform that automates campaign delivery and improves ad quality [7] - The company has expanded its advertising reach to platforms like WhatsApp and Threads, competing with other social media giants [7] Industry Trends - Meta's significant investment in AI reflects a broader trend in the tech industry, with major firms expected to spend $400 billion on AI infrastructure by 2025 [8] - However, the aggressive spending amid economic uncertainty raises concerns about a potential AI bubble and scrutiny over executive decisions [9]

that meta results are out. Stock is headed lower and we can go to Julia Borston on that right now. Julia, uh I wonder if you can see why the stock is down seven or so percent.>> Well, earnings and revenue both beat expectations. Adjusted earnings of $7.25%. That's ahead of estimates of 669, but that includes a one tax onetime non-cash income tax charge of $15.9% billion.Um but that without that one-time charge which is due to the big beautiful bill um President Trump's big beautiful deal bill that would hav ...

that meta results are out. Stock is headed lower and we can go to Julia Borston on that right now. Julia, uh I wonder if you can see why the stock is down seven or so percent.>> Well, earnings and revenue both beat expectations. Adjusted earnings of $7.25%. That's ahead of estimates of 669, but that includes a one tax onetime non-cash income tax charge of $15.9% billion.Um but that without that one-time charge which is due to the big beautiful bill um President Trump's big beautiful deal bill that would hav ...

Meta Platforms, Inc. (NASDAQ:META) released its third-quarter earnings report after Wednesday's closing bell. Here's what to know: META stock is moving. See the real-time price action here.The Details: Meta reported diluted earnings per share of $1.05, which includes a one-time, non-cash income tax charge of $15.93 billion and may not compare to estimates of $6.68. On an adjusted basis, earnings per share came in at $7.25, according to Benzinga Pro.Quarterly revenue of $51.24 billion, which beat the Street ...