Core Insights - Meta Platforms has returned a total of $167 billion to its investors over the past decade through dividends and stock buybacks, ranking it as the seventh-highest in history for shareholder returns [1][3]. Financial Performance - Revenue Growth: Meta reported a 19.4% revenue growth over the last twelve months (LTM) and an average growth of 13.0% over the past three years [6]. - Cash Generation: The company has a free cash flow margin of nearly 30.7% and an operating margin of 42.9% LTM [6]. - Valuation: Meta's stock trades at a price-to-earnings (P/E) ratio of 27.2, which is favorable compared to the S&P 500 [6]. Capital Return Strategy - Dividends and stock buybacks are significant as they represent direct returns to shareholders and reflect management's confidence in the company's financial stability and sustainable cash flows [4]. - Meta's capital return strategy positions it favorably against other leading companies in the market [4]. Market Context - Despite its strong fundamentals, Meta has experienced significant declines in the past, including a 43% drop during the 2018 market correction and a 77% loss during the inflation shock [7].

This story was originally published on Social Media Today. To receive daily news and insights, subscribe to our free daily Social Media Today newsletter. With Threads ads now available to all Meta partners, it’s also expanding its ad certification partnerships, which will provide more assurance on ad placement and performance in the Threads environment. Meta has announced that it’s expanding third-party verification to Threads feed through Integral Ad Science, DoubleVerify, and Scope3, with Zefr support al ...

Market Overview - The recent bull market on Wall Street has persisted for three years, primarily driven by the adoption of generative AI technology, with cyclical sectors like industrials, financials, consumer discretionary, and utilities also participating [1] - The bull run is expected to continue due to a resilient U.S. economy, declining inflation, solid earnings results, and the Fed's low-interest rate regime and accommodative monetary policies [2] DocuSign Inc. (DOCU) - DocuSign's strength is attributed to its subscription revenues, which have been the majority of its top line over the past three years, and efficient international growth from selling expenses [4][11] - The company has a strong focus on R&D, enhancing product offerings and customer experience, supported by partnerships with tech giants like Salesforce and Microsoft [5][11] - Expected revenue and earnings growth rates for the current year are 7.1% and 3.9%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [6] - DOCU is trading at a 37% discount from its 52-week high, with a short-term average price target indicating a potential increase of 37.3% from the last closing price of $67.91, suggesting a maximum upside of 82.6% [7] Reddit Inc. (RDDT) - Reddit is experiencing strong growth in user engagement, with rising daily and weekly active users, ARPU gains, and expanding advertiser tools [8] - AI-powered features like Reddit Answers, which has over six million weekly users, are enhancing content discovery and personalization [9] - Expected revenue and earnings growth rates for the current year are 58.6% and over 100%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [10] - RDDT is currently trading at a 40.9% discount from its 52-week high, with a short-term average price target indicating an increase of 11.8% from the last closing price of $200.76, suggesting a maximum upside of 49.4% [12] Fair Isaac Corp. (FICO) - Fair Isaac is benefiting from strong financial performance driven by growth in its Scores and Software segments, with new scoring models enhancing predictive accuracy [13][14] - The Software segment shows strength with increased adoption of SaaS and license revenues, indicating strong platform engagement [14] - Expected revenue and earnings growth rates for the current year are 19.6% and 30.7%, respectively, with a 0.1% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [15] - FICO is trading at a 31.9% discount from its 52-week high, with a short-term average price target indicating a potential increase of 21.1% from the last closing price of $1,636.65, suggesting a maximum upside of 46.6% [16]

Core Insights - Myseum, Inc. has received a notice of allowance for a new patent related to secure real-time communications, enhancing its intellectual property portfolio and leadership in digital privacy technology [1][2] - The company has secured protection in four international markets this year, indicating strong growth in its intellectual property [2] - Myseum is set to launch a new social sharing platform called "Picture Party by Myseum" this fall, which focuses on privacy and secure connections for sharing photos and videos [2][4] Intellectual Property - Myseum's intellectual property portfolio now includes 18 issued patents and two Notices of Allowance, along with several pending applications [3] - The new patent is a significant milestone in the company's domestic and global IP expansion efforts [2] Product Offerings - The "Picture Party by Myseum" platform aims to provide a dynamic way for users to share content while emphasizing privacy and ease of use [2] - Myseum's flagship platform allows users to create albums, encrypted galleries, and personalized newsfeeds, with 50 GB of free storage available [4][5] - The company also operates the DatChat Messenger, which offers unique features for message control and security [6]

Core Insights - OpenAI's Sora 2 has emerged as a significant player in the AI video generation space, drawing comparisons to the impact of ChatGPT on search engines [1][3] - Sora 2 not only enhances video generation capabilities but also integrates social media features, positioning itself as a new social platform [3][4] - The launch of Sora 2 raises questions about its potential impact on Meta, especially given the historical context of TikTok's rapid rise affecting Meta's stock [1][3] Technology and Features - Sora 2 shows substantial improvements over its predecessor, supporting complex scenes and coherent narratives, along with synchronized audio effects [3][6] - The AI's understanding of physical world dynamics has improved, allowing for more natural movements and realistic character interactions [3][6] - Despite its advancements, Sora 2 faces limitations such as short video lengths (around 10 seconds), slow generation speeds, and lower video quality compared to existing platforms [6][7] Market Position and Competition - In the short term, Sora 2's impact on Meta is minimal due to the current entertainment value and viewing experience still lagging behind real videos [7][9] - Meta's established user base, advanced algorithms, and robust content distribution ecosystem provide significant competitive advantages that Sora 2 currently cannot match [9][10] - Long-term implications of Sora 2's success hinge on overcoming computational limitations, which could eventually allow AI-generated videos to rival or surpass real videos [10][12] Industry Dynamics - The evolution of content creation driven by technological advancements suggests that AI content could reshape the industry landscape, similar to past transitions in video content [12][14] - The true challenge for Meta may not be the AI-generated videos themselves, but rather the new usage scenarios and experiences that AI content can create [14][16] - OpenAI's focus on maintaining its lead in language models may limit its ability to effectively compete in the social media space against established players like Meta [16][18] Investment Perspective - The current competition between Sora and Meta may present investment opportunities for Meta, especially if it continues to innovate in the AI space [19][20] - The ongoing evolution in AI video applications may lead to a consolidation phase, where a single winner emerges from the current competitive landscape [20][21]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Snap Inc. securities between April 29, 2025, and August 5, 2025, of the upcoming lead plaintiff deadline on October 20, 2025, for a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Snap securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by October 20, 2025 [3]. - Investors are encouraged to select qualified legal counsel with a proven track record in securities class actions, as many firms may lack the necessary experience [4]. Group 2: Case Background - The lawsuit alleges that Snap's management misled investors by presenting overly optimistic expectations regarding advertising revenue and growth, while downplaying significant execution errors and macroeconomic challenges [5]. - When the true situation regarding Snap's performance became known, investors reportedly suffered damages due to the misleading information provided during the Class Period [5].

Market Overview - The market is experiencing upward momentum, with small caps and gold reaching all-time highs, indicating a strong performance as the year progresses [4][20] - Bank earnings have been robust, exceeding expectations significantly, which bodes well for the overall earnings season [19][21] Risk Management - There is a cautious sentiment regarding risk management due to the market being perceived as overbought, with suggestions to take profits and rebalance risk exposure [2][5][8] - Historical patterns suggest potential volatility in early December, typically resulting in a 5-10% selloff due to mutual fund distributions [7][8] Earnings Outlook - The third quarter earnings season is expected to have a high beat rate of around 80-85%, driven by a rebound in earnings following a prior drop in expectations [21][23] - Earnings and revenue growth are anticipated to remain strong, although there are concerns about potential risks in the first quarter of the following year if economic growth slows [24][25] Investment Opportunities - Meta is highlighted as a strong investment opportunity in the AI space, with solid revenue generation from advertising, despite recent corrections [11][12][13] - Other stocks like Apply Digital and Vertiv are noted for their potential in the data center buildout, but caution is advised due to their current overbought status [15] Gold Market - Gold is currently experiencing significant momentum and is expected to remain a strong investment until early next year, although future performance may be influenced by the strength of the dollar [18][19]

Core Insights - Technology stocks have experienced significant growth over the past decade due to their transformative impact on consumer behavior and daily life [1] - Simpler, non-tech businesses, particularly in the Consumer Staples sector, have also shown strong performance and resilience against market volatility [3][7] Group 1: Company Performance - Cintas (CTAS) has achieved an impressive +810% gain over the last decade, outperforming Meta Platforms (META), which gained +630% during the same period [4] - Cintas has delivered a +24.6% annualized return, demonstrating less volatility compared to tech stocks, especially during the market downturn in 2022 [4] - Waste Management (WM) has also shown strong performance, significantly outpacing the S&P 500's 320% gain over the last decade, while maintaining stability during market fluctuations [5] Group 2: Investment Perspective - The consistent nature of companies like Cintas and Waste Management provides a protective shield against market volatility, making them attractive investment options [3][7] - Investors do not need to rely solely on tech stocks for substantial returns, as these simpler companies have proven to deliver dependable growth by excelling in their core operations [9]

Core Insights - Snap Inc. shares declined by 6.6% following Mizuho's initiation of coverage with a Neutral rating and a $9 price target, describing the company as a "show-me story" due to weak feedback from its advertising channels [1][2] Company Performance - Snap faced significant negative consequences from an "execution error" related to a recent change in its advertising platform, which was not disclosed to investors during the Class Period [5][8] - The company's Q2 2025 results revealed a slowdown in ad revenue growth, dropping from 9% in Q1 to just 1% in April, leading to a 17% stock price drop the following day [6] Legal Issues - A federal securities class action lawsuit has been filed against Snap and certain senior executives, alleging misleading representations regarding the performance and growth prospects of its digital advertising platform [2][5] - The lawsuit covers investors who purchased shares between April 29, 2025, and August 5, 2025 [7][11]

Market Overview - The S&P 500 experienced a significant drop of over 4% last Friday due to escalating trade tensions from the Trump administration, leading to increased market volatility [1] - Major indices showed a partial rebound on Monday, but investors are preparing for further fluctuations related to the trade war [1] Terawulf Inc. (NASDAQ: WULF) - Terawulf has seen a remarkable stock increase of over 200% in the last three months, rising from $2 to $15, with a current market capitalization exceeding $6 billion [4] - The company focuses on sustainable energy systems for Bitcoin mining, differentiating itself from many peers [4] - The stock chart indicates support along the 14-day simple moving average (SMA), suggesting strength in the upward trend, but the Relative Strength Index (RSI) indicates overbought conditions [6][7] USA Rare Earth Inc. (NASDAQ: USAR) - USA Rare Earth has gained over 200% in the last three months, with a market capitalization of $4 billion, driven by speculation around its potential benefits from the trade war [8] - The stock has seen a 160% increase in the last 30 days alone, indicating strong bullish momentum [8] - The stock chart shows bullish confirmation on the Moving Average Convergence Divergence (MACD) indicator, although the RSI is also at overbought levels [10] Plug Power Inc. (NASDAQ: PLUG) - Plug Power's stock is approaching multi-year highs, recovering from a decline of over 70% since its peak in 2021 [11] - The company is well-positioned in the hydroelectric power sector, which has not been adversely affected by recent subsidy cuts [11] - The stock shows potential for a breakout, with the 14-day SMA acting as support, but remains a short-term trade rather than a long-term investment [13] Quantumscape Corp. (NYSE: QS) - Quantumscape has seen its market cap rise above $9.5 billion, with a stock increase of 220% year-to-date, despite not yet turning a profit [14] - The stock experienced a downturn from July to September but has shown signs of recovery since early September, with strong bullish momentum indicated by the MACD [16] - The upcoming earnings report on October 22 poses a risk to the current technical trend [16] Weibo Corp. (NASDAQ: WB) - Weibo has a market capitalization of $2.75 billion and generates annual sales of approximately $1.75 billion, trading at less than eight times earnings [17] - The stock has gained 40% since April but has recently declined nearly 10% due to profit-taking and breaking through support levels [19] - Despite sound long-term fundamentals, the stock is expected to face volatility until trade tensions stabilize [19]