Meta Platforms(US:META) Huaan Securities·2025-08-04 13:12Investment Rating - Investment Rating: "Buy" (Maintained) [3] Core Insights - In Q2 2025, Meta's revenue reached $47.5 billion, a year-on-year increase of 21.6%, exceeding Bloomberg consensus expectations by 5.99% [6] - Operating income was $20.4 billion, up 37.7% year-on-year, also surpassing Bloomberg consensus by 18.59% [6] - GAAP net profit was $18.3 billion, reflecting a 36.2% year-on-year growth, exceeding Bloomberg consensus by 20.91% [6] - The company's CapEx guidance for the year has been raised to $66-72 billion, up from previous guidance of $64-72 billion [7] Financial Performance - For Q2 2025, the revenue from the Family of Apps (FOA) was $47.1 billion, a 21.8% increase year-on-year, also above Bloomberg consensus by 6.18% [6] - Advertising revenue was $46.6 billion, up 21.5% year-on-year, exceeding Bloomberg consensus by 5.66% [6] - Reality Labs revenue was $400 million, a 4.8% year-on-year increase, but below Bloomberg consensus by 4.15% [6] Advertising Business Insights - Ad impressions grew by 11% in the quarter, a 6 percentage point increase from the previous quarter [7] - Average price per ad increased by 9%, a slight decline of 1 percentage point from the previous quarter [7] - AI has improved ad conversion rates, with Instagram ad conversion up by 5% and Facebook by approximately 3% [7] - User engagement on Facebook and Instagram increased by 5% and 6%, respectively, due to AI recommendation systems [7] Future Projections - Revenue projections for Meta from 2025 to 2027 are $199.4 billion, $236.3 billion, and $275.3 billion, respectively, with year-on-year growth rates of 21.2%, 18.5%, and 16.5% [7] - GAAP net profit projections for the same period are $76.4 billion, $82.1 billion, and $93.3 billion, with year-on-year growth rates of 22.5%, 7.5%, and 13.7% [7] Key Financial Metrics - For 2025, expected revenue is $199.4 billion, with a year-on-year growth of 21.2% [10] - Expected net profit for 2025 is $76.4 billion, reflecting a 22.5% year-on-year increase [10] - Projected EPS for 2025 is $29.6, with a P/E ratio of 25 [10]