Meta Platforms (META 1.05%) rose over 11% on July 31 thanks to the incredible results that it posted during the second quarter. Meta also delivered some shocking news that helped propel the stock higher, as its expected growth is far greater than anyone predicted. But after a large jump in a short time frame, is the stock still worth buying? Q2's growth far exceeded management's expectations Meta Platforms is better known for the social media platforms that it owns: Facebook, Instagram, Threads, WhatsApp, a ...

Core Viewpoint - Netflix demonstrates stable performance in a changing environment, making it a viable option for both growth and risk mitigation [1]. Group 1: Financial Performance - In Q2 2025, Netflix's revenue grew by 16%, exceeding guidance and expectations, primarily driven by price increases in core regions [2]. - The success of "Squid Game" Season 3 contributed to user growth, with an estimated net addition of over 8 million subscribers, slightly higher than the previous year [2]. - The Q3 revenue guidance indicates a 17.3% year-over-year growth, surpassing market expectations due to the popularity of new content [2]. - The full-year revenue target for 2025 has been raised by approximately 2% to a range of $44.8 billion to $45.2 billion, with operating profit margin expectations adjusted to 29.5% [2]. Group 2: Market Dynamics - The implied Q4 revenue growth is projected at 17%, which is also above expectations, but concerns arise regarding the reliance on external factors like currency depreciation rather than organic business growth [3]. - Management expresses confidence in doubling advertising revenue this year, estimating it will reach $1.5 billion to $2 billion, accounting for about 4% of total revenue [3]. - Content investment in Q2 was $4 billion, showing a year-over-year decline of 8%, with expectations that the full-year budget of $18 billion may not be fully utilized [3]. Group 3: Content Strategy and Future Outlook - The current content cycle has been strong, with many classic IPs releasing sequels, but there are concerns about sustaining high growth post-peak [5]. - Opportunities for growth exist in the decline of cable TV and relaxed competition within the industry, although Netflix's expansion into sports and short-form content remains a challenge [5]. - Netflix's valuation reflects its unique position of being able to pursue growth while maintaining resilience against market fluctuations, with a forward P/E ratio of 35x [6].

Core Insights - Meta Platforms experienced a pre-market increase of over 6% following a strong Q1 advertising revenue growth in double digits and a significant upward revision of its spending guidance for the year [1] Group 1: Financial Performance - Q1 advertising revenue showed double-digit growth, indicating robust demand for advertising on Meta's platforms [1] - The company has raised its spending guidance for the year, reflecting confidence in its business outlook and investment in growth initiatives [1] Group 2: Market Reaction - The pre-market stock price increase of over 6% suggests positive investor sentiment and market confidence in Meta's financial performance and strategic direction [1]