Core Insights - Meta Platforms (META) reported Q3 2025 non-GAAP earnings of $7.25 per share, exceeding Zacks Consensus Estimate by 9.68%, while GAAP earnings fell 82.6% year over year to $1.05 per share [1] - Revenues reached $51.24 billion, surpassing Zacks Consensus Estimate by 3.63% and increasing 26.2% year over year [1] - At constant currency, revenues grew 25% year over year [1] Revenue Breakdown - Revenues from the Family of Apps, which constitutes 99.1% of total revenues, rose 26% year over year to $50.77 billion [2] - Daily Active People (DAP) across Family of Apps reached 3.54 billion, marking a 7.6% increase year over year [2] - Geographically, revenues surged 23.5% in the U.S. & Canada, 25% in Asia-Pacific, 29.2% in Europe, and 31.9% in the Rest of the World [3] Advertising Performance - Advertising revenues, making up 98.6% of Family of Apps revenues, increased 25.6% year over year to $50.08 billion [4] - Ad impressions across Family of Apps grew 14% year over year, with the average price per ad rising 10% [5] - Advertising revenues from the U.S. & Canada, Asia-Pacific, Europe, and the Rest of the World increased by 22.7%, 24.5%, 29%, and 30.9% year over year, respectively [4] Operating Metrics - Total costs and expenses rose 32.1% year over year to $30.71 billion, accounting for 59.9% of revenues [6] - Operating income increased 18.4% year over year to $20.54 billion, with an operating margin of 40.1%, down 270 basis points year over year [9] - Family of Apps' operating income grew 14.6% year over year to $25 billion, while Reality Labs reported a loss of $4.43 billion, unchanged year over year [9] Financial Position - As of September 30, 2025, cash and cash equivalents along with marketable securities totaled $44.45 billion, down from $47.07 billion as of June 30, 2025 [10] - Long-term debt remained stable at $28.83 billion [10] - Capital expenditures for Q3 were $19.37 billion, with free cash flow at $10.63 billion [10] Future Guidance - Meta expects total revenues for Q4 2025 to be between $56 billion and $59 billion, with a 1% tailwind from favorable foreign exchange [11] - For 2025, total expenses are anticipated to be between $116 billion and $118 billion, indicating a growth rate of 22-24% year over year [11] - Capital expenditures for 2025 are projected to be in the range of $70-$72 billion, an increase from previous guidance [12]

Alphabet's latest quarterly earnings delivered the goods, beating Wall Street analysts' expectations on both the top and bottom lines. The consensus among analysts covering Alphabet stock was for revenue of about $100 billion. Strong advertising sales at Google and YouTube, and robust demand for artificial intelligence compute power at Google Cloud, resulted in revenue of $102.4 billion, up 16% year over year. We delivered our first-ever $100 billion quarter. Google services, including Search, Android, ...

Core Insights - Alphabet's third-quarter 2025 earnings per share (EPS) reached $2.87, exceeding the Zacks Consensus Estimate by 26.99% and reflecting a year-over-year increase of 35.4% [1] - Total revenues for the quarter amounted to $102.35 billion, marking a 16% year-over-year growth (15% at constant currency) [2] Revenue Breakdown - Net revenues, excluding total traffic acquisition costs (TAC), were $87.47 billion, surpassing the consensus estimate by 3% and increasing 17.3% year over year [2] - Google Services revenues rose 13.8% year over year to $87.05 billion, accounting for 85.1% of total revenues, beating the Zacks Consensus Estimate by 2.43% [3] - Google Cloud revenues surged 33.5% year over year to $15.16 billion, representing 14.8% of total revenues for the quarter and exceeding the consensus estimate by 3.25% [3] Advertising Performance - Search and other revenues increased 14.5% year over year to $56.57 billion, surpassing the Zacks Consensus Estimate by 2.58% [4] - YouTube's advertising revenues improved 15% year over year to $10.26 billion, beating the consensus mark by 2.31% [5] - Google advertising revenues grew 12.6% year over year to $74.18 billion, accounting for 85.2% of total revenues, and also exceeded the consensus mark by 2.3% [6] Cloud and AI Developments - Google Cloud ended the quarter with a backlog of $155 billion, up 46% sequentially, with a 34% year-over-year increase in new customers [8] - Revenues from products built on Alphabet's generative AI models grew over 200% year-over-year, indicating strong adoption [10] Operating and Financial Metrics - Total costs and operating expenses for the quarter were $71.12 billion, up 19% year over year, leading to an operating margin of 30.5%, which contracted 180 basis points year over year [11] - Alphabet's cash, cash equivalents, and marketable securities stood at $98.5 billion as of September 30, 2025, an increase from $95.15 billion as of June 30, 2025 [13] Capital Expenditure Guidance - For 2025, Alphabet raised its capital expenditure guidance to between $91 billion and $93 billion, up from the previous estimate of $85 billion [15]

Key Points Alphabet crushed on earnings last night, and Google Cloud revenue grew 34%. Total sales growth was 16% for Alphabet, but capital expenditure is growing much faster. Alphabet's AI investments are creating revenue growth, but at a high cost. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock surged 5% through 11:45 a.m. ET Thursday after beating earnings forecasts last night. Before its Q3 report, analysts forecast the Google parent company would earn ...

Core Insights - Meta Platforms Inc may shift its future focus from advertising revenue to artificial intelligence (AI) capabilities, as indicated by CEO Mark Zuckerberg during the third quarter earnings call [1][2]. Investment and Infrastructure - Meta's capital expenditures on AI hardware are projected to increase by 80% in 2025 and at least 50% in 2026, surpassing the $100 billion mark, according to JPMorgan estimates [3]. - The company is building an aggressive AI infrastructure, which may lead to a surplus of computing power that could be monetized [4]. Market Position and Opportunities - If Meta decides to monetize its excess computing capacity, it would compete directly with major players like Amazon Web Services, Microsoft Azure, and Google Cloud in a $600 billion market [5]. - Meta's existing AI models and extensive data center infrastructure position it well to establish a credible AI cloud business, potentially creating a new revenue stream less affected by advertising cycles [6]. Future Growth Potential - The company's next growth narrative may emerge from supercomputing rather than social media, positioning Meta as a significant player in the hyperscaler market [7].

Core Insights - Alphabet achieved its first-ever $100 billion revenue quarter, driven by the integration of artificial intelligence (AI) across its business segments [1] - The company's stock surged over 7% in pre-market trading following the strong financial results [1] Financial Performance - Alphabet's total revenue rose 15% year-over-year to $56.6 billion in Q3, with AI-driven experiences enhancing user engagement and monetization [3] - Cloud revenue increased by 34% to $15.2 billion in Q3, supported by the rising adoption of enterprise AI tools [5] Business Segments - The search business is benefiting from increased consumer reliance on AI-powered experiences, contributing to overall revenue growth [2] - YouTube's ad revenue is also experiencing growth, further bolstering Alphabet's financial performance [2] - The cloud division's backlog grew 46% quarter-over-quarter to $155 billion, indicating strong future growth potential [2] AI Integration - New AI features like AI Overviews and AI Mode are enhancing search result quality and commercial intent, leading to deeper user interactions and new monetization pathways [4] - The demand for AI-led services is driving strong performance in the cloud segment, with a notable increase in new Google Cloud Platform (GCP) customers, up nearly 34% year-over-year [5] Subscription Growth - Alphabet's subscription business surpassed 300 million paid users, fueled by the popularity of Google One and YouTube Premium [3]

Core Insights - Alphabet achieved its first hundred billion dollar quarter, with strong performance across all major business lines [1] - The company's AI infrastructure investments are translating into significant revenue growth, with search revenue up 14%, YouTube ads increasing by 15%, and Google Cloud revenue jumping 34% year-over-year [2] Revenue Growth - Search revenue increased by 14%, YouTube ad revenue rose by 15%, and Google Cloud revenue surged by 34% year-over-year, exceeding market expectations [2] - The backlog for Google Cloud reached $155 billion, an increase of nearly 80% from the previous year, indicating strong future revenue potential [3][4] AI and Product Development - AI mode has 75 million daily active users in the US, with usage doubling over the quarter, and Google is testing ads within this mode [3] - Gemini, Google's consumer-facing chatbot, has reached 650 million monthly active users, narrowing the gap with OpenAI [3] Capital Expenditure and Investment Strategy - Alphabet raised its full-year capital expenditure guidance to as much as $93 billion, reflecting its commitment to meet rising AI demand [5] - The number of billion-dollar cloud deals this year has already surpassed the total from the past two years combined, excluding a new contract with Anthropic worth tens of billions [4] Market Performance - Alphabet's stock rose 38% in Q3, marking its largest gain in 20 years, driven by investor confidence in its monetization strategy for AI [8] - Year-to-date, the stock is up 52%, approaching a market value of $3.5 trillion [9]

Core Insights - Alphabet, Inc. reported historic Q3 results, achieving over $100 billion in revenue for the first time, with total revenue reaching $102.4 billion, a 16% year-over-year increase [1][2] - Net income rose by 33% to nearly $35 billion, and earnings per share increased by 35% to $2.87 [2] Financial Performance - Google Cloud revenue grew by 34% to $15.16 billion [2] - Search revenue increased by 14.5% to $56.57 billion [2] - YouTube ad revenue saw a growth of 15% to $10.26 billion [2] Analyst Reactions - Analysts expressed enthusiasm regarding Alphabet's performance and its investments in AI infrastructure [3] - Canaccord Genuity maintained a Buy rating and raised the price target from $270 to $330, highlighting AI-driven momentum across various business lines [4][5] - Wedbush Securities reiterated an Outperform rating and increased its price target to $320 from $245, emphasizing Alphabet's leadership in AI [6][7] - Needham raised its price target from $260 to $330, noting the effectiveness of Alphabet's generative AI strategy [8][9] - KeyBanc Capital Markets also raised its price target from $300 to $330, focusing on Alphabet's AI advancements [10][11] - Rosenblatt Securities maintained a Neutral rating but raised its price target from $224 to $279, acknowledging strong quarterly results while expressing caution about future competition [12] Capital Expenditures - Alphabet increased its 2025 capital expenditures forecast to $91–$93 billion, up from $85 billion, with significant increases planned for 2026 [5][7] - Q3 capital expenditures surged by 83% year-over-year to $24 billion, reflecting a strong focus on Cloud and AI investments [9]

Core Insights - Alphabet (GOOGL) shares reached a record high after reporting earnings that exceeded Wall Street estimates, with quarterly revenue surpassing $100 billion for the first time [1][8] Financial Performance - In Q3, Google Cloud revenue increased by 34% year-over-year, driven by significant investments in AI infrastructure and data analytics [2] - The legacy advertising business saw a 13% revenue growth, indicating stability in the digital ad market despite economic uncertainties [2] - The company raised its capital expenditure forecast for the year to between $91 billion and $93 billion, reflecting strong demand for AI [2] Stock Performance - Alphabet shares rose nearly 5% to around $288, with over 50% gains since the start of 2025, making it the top-performing stock among the Magnificent Seven [3] - The stock broke out from a flag pattern, suggesting a continuation of its strong uptrend, although the relative strength index indicates overbought conditions [5][8] Technical Analysis - The measuring principle suggests a potential upside target of $360 for Alphabet shares if the rally continues [8] - Key support levels to monitor are around $235 and $205 [8]

Core Viewpoint - Meta Platforms' stock is experiencing a sell-off despite reporting record revenue in Q3, primarily due to increased capital expenditures and a significant one-time charge impacting earnings per share [1][6][13]. Financial Performance - Meta reported revenue of $51.24 billion, exceeding expectations of $49.6 billion, indicating strong performance [7]. - The company faced a one-time charge of nearly $16 billion, which significantly reduced earnings per share to $15, compared to expectations of $6.72, marking a substantial miss [6][13]. Capital Expenditures - Meta is raising its capital expenditure (capex) estimates for the year to a range of $70 to $72 billion, up from a prior outlook of $66 to $72 billion [9]. - The CFO indicated that capex in 2026 is expected to be even higher than in 2025, with total expenses projected to grow significantly faster in 2026 than in 2025, driven by infrastructure costs and hiring [10][11]. Analyst Reactions - Oppenheimer downgraded Meta to "perform," citing concerns over high spending and the inability to rationalize the current price-to-earnings (PE) ratio of about 29 until visibility into 2027 improves [12][13]. - Benchmark also downgraded Meta to "hold," removing their price target due to increased competition and a belief that shares will remain range-bound in the near term [15]. Market Comparison - Analysts are favoring Alphabet over Meta, noting that Alphabet offers predictable earnings at a reasonable valuation, trading at a similar PE ratio [14][16]. - The overall sentiment in the market suggests that Meta's aggressive spending strategy is viewed with caution compared to competitors like Google and Amazon, which are perceived to be better positioned [16].