Core Insights - Yelp Inc. reported better-than-expected fourth-quarter 2025 results with earnings of 61 cents per share, surpassing the Zacks Consensus Estimate by 29.1% despite a year-over-year decline of 1.6% from 62 cents [1][11] - The company's revenues decreased by 1% year over year to $360 million but exceeded the consensus mark by 0.5%, primarily due to a decline in advertising revenues [2][11] Financial Performance - Advertising revenues, which account for 94% of total revenues, fell by 2% year over year to $338 million, driven by a decrease in ad clicks [3][11] - The Services business saw advertising revenues grow by 2.9% year over year to $231.4 million, while the Restaurants, Retail & Other (RR&O) division's revenues dropped by 11.6% to $106.8 million due to macroeconomic challenges [4] - Total costs and expenses increased by 1% year over year to $311 million, with adjusted EBITDA plunging 15% to $86 million, resulting in a margin decrease from 28% to 24% [6] Balance Sheet and Cash Flow - As of December 31, 2025, Yelp held $319 million in cash and equivalents with no debt, generating an operating cash flow of $84.5 million and free cash flow of $72.3 million in the fourth quarter [7] Guidance - For Q1 2026, Yelp anticipates revenues between $350 million and $355 million, which is below the Zacks Consensus Estimate of $360.4 million and the previous year's revenues of $359 million [8][11] - For the full year 2026, the company expects revenues between $1.455 billion and $1.475 billion, compared to 2025 revenues of $1.465 billion and the consensus estimate of $1.5 billion [9]

AppLovin misses quarterly revenue estimates amid advertising competition | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Feb 11 (Reuters) - Marketing platform AppLovin [(APP.O), opens new tab] missed market estimates for fourth-quarter sales on Wednesday, indicating tepid demand for its advertising services amid increasing competition and an uncertain macroeconomic environment.Companies ranging from Big Tech to up-and-coming advert ...

Core Viewpoint - Meta Platforms is facing investor concerns due to its heavy reliance on advertising, which accounts for 98% of its revenues, leading to earnings volatility compared to more diversified peers [1] Company Summary - Meta Platforms' stock was trading near its 52-week low in early January 2026, indicating market apprehension regarding its financial stability [1]

Market Overview - The S&P 500 is attempting to reach the 7,000 level again, with mixed earnings results creating some headwinds [2][5] - Initial unemployment claims data is expected to be lower than street expectations, which could be bullish for the market [3] - The dollar is declining, positively impacting commodity prices, particularly copper, which is seeing significant gains [3][4] Meta Platforms - Meta's shares are up approximately 8.7% in pre-market trading, with revenue exceeding expectations at $59.8 billion, compared to the expected $58.5 billion [7][8] - Adjusted earnings per share came in at $8.88, beating the expected $8.81, and guidance for future revenue was a major beat by about $3.5 billion [8] - Q4 revenue increased by 24% year-over-year, with strong advertising revenue [8] - The company is cutting costs in certain areas while increasing capital expenditures in strategic areas, particularly AI [9][10] - Analysts are raising price targets for Meta following its strong results [11] Microsoft - Microsoft shares are down about 6.7% in pre-market trading despite revenue exceeding expectations at $81.2 billion, compared to the expected $80.2 billion [12] - Adjusted earnings per share were $4.14, above the expected $3.88, but guidance for Q3 was in line with expectations, lacking a significant upside surprise [12][13] - Azure growth was 39% year-over-year, slightly below expectations, and future guidance for Azure growth is also lower than anticipated [13][14] - Concerns are arising regarding the concentration of spend with OpenAI, which constitutes 45% of Microsoft's backlog [16][17] - Morgan Stanley has removed Microsoft from its top pick list for 2026, contributing to selling pressure [18] IBM - IBM shares are up more than 8% following strong earnings, with revenue at $19.69 billion, exceeding the expected $19.2 billion [19] - Adjusted earnings per share were $4.52, above the expected $4.32, with automation unit growth at 18% year-over-year [19] - The AI business grew by $3 billion, and the data unit saw a 22% increase [20] - The government shutdown previously impacted the Red Hat business, but recovery is expected now that the government is operational [20] - IBM is also making strides in quantum computing, which may position it favorably against competitors [22]

Core Insights - The results of the parent company of Facebook demonstrate the benefits of its streamlined, advertisement-centric business model [1] Group 1 - The company has shown a strong performance due to its focus on advertising, which has simplified its operations [1] - The ad-focused model has allowed the company to capitalize on market trends effectively [1] - The financial results indicate a positive trajectory for the company's revenue growth driven by advertising [1]

Core Insights - Meta reported a significant quarter with approximately $59.9 billion in revenue and $8.88 in EPS, planning to invest $115 billion to $135 billion in capex for 2026, alongside expenses projected to reach $169 billion, indicating a strong focus on future growth and AI development [1][2] Financial Performance - The company's shares surged about 10% in after-hours trading following the announcement of better-than-expected results and a positive revenue outlook, despite a substantial spending plan [2] - Meta's Q1 revenue outlook for 2026 is estimated between $53.5 billion and $56.5 billion, exceeding many analysts' expectations [3] Business Strategy - Mark Zuckerberg emphasized a vision for advancing "personal superintelligence" while acknowledging the importance of Meta's core advertising business, which continues to thrive with an 18% year-over-year increase in ad impressions and a 6% rise in average ad prices [4] - The company reported an average of 3.58 billion daily active users across its platforms in December, supporting its narrative of significant investment potential [4] Capital Expenditure Plans - Meta's capex plan for 2026 is nearly double the $72.2 billion reported for 2025, with total expenses projected to rise from $117.7 billion in 2025, highlighting the company's commitment to substantial investment in AI and infrastructure [5]

Core Insights - Meta's fourth-quarter results exceeded Wall Street expectations, driven by strong advertising revenue, leading to a significant increase in stock price during after-hours trading [1] Financial Performance - Meta reported earnings of $22.77 billion, or $8.88 per share, for the October-December quarter, marking a 9% increase from $20.84 billion, or $8.02 per share, in the same period the previous year [1] - Revenue grew 24% to $59.89 billion from $48.39 billion year-over-year [1] - Analysts had anticipated earnings of $8.21 per share on revenue of $58.5 billion, indicating that Meta's performance was notably stronger than expected [1] Market Position - Meta's strong performance reinforces its status as one of the world's leading media companies, according to industry analysts [1] Future Outlook - For the current quarter, Meta forecasts revenue between $53.5 billion and $56.5 billion, surpassing analysts' expectations of $51.4 billion [1] - For 2026, Meta projects expenses to range from $162 billion to $169 billion, primarily due to infrastructure costs and high compensation for AI experts [1] Investment in AI - The company is significantly increasing its spending on artificial intelligence, which is expected to support its long-term growth despite rising expenses [1] - Meta's expenses grew 40% to $35.15 billion, with a warning of even higher costs in the upcoming year [1]

Core Viewpoint - Comcast Corporation (CMCSA) has experienced significant underperformance compared to the broader market and its peers, raising concerns about its future growth prospects, particularly in the broadband sector [2][4]. Company Performance - Comcast's market capitalization stands at $106.8 billion, and it operates in the media and technology sectors, providing services such as broadband, wireless, cable television, and advertising [1]. - Over the past 52 weeks, CMCSA shares have declined by 21.8%, while the S&P 500 Index has gained 13.9% [2]. - Year-to-date, CMCSA's stock is down 1.5%, mirroring the S&P 500's 1.5% increase [2]. - The company's performance has also lagged behind the iShares U.S. Telecommunications ETF, which has seen a 21.2% increase over the past year [3]. Analyst Ratings and Price Targets - Following recent analyst downgrades, CMCSA shares fell by 3.1% on November 3, with Barclays reducing its price target from $34 to $30 and Deutsche Bank lowering its estimate from $44 to $40 [4]. - Analysts expect CMCSA's earnings per share (EPS) to decline by 2.8% year-over-year to $4.21 for the current fiscal year ending in December [5]. - The consensus rating among 30 analysts is a "Moderate Buy," comprising 10 "Strong Buy," 18 "Hold," and 2 "Strong Sell" ratings [5]. - The mean price target is $34.41, indicating a 16.9% premium from current levels, while the highest target of $53 suggests an 80.1% potential upside [7].

Core Viewpoint - Meta Platforms reported disappointing earnings in Q3 2025, causing a share price drop of over 11%. The upcoming Q4 2025 report on January 28 is highly anticipated, with a focus on guidance for 2026 [2]. Financial Performance - Analysts expect Meta to report revenue of $58.3 billion for Q4 2025, reflecting a growth rate of approximately 20% to 21%. Adjusted EPS is forecasted at $8.16, indicating around 2% growth. Meta has outperformed these expectations in the last two quarters [3]. - For Q1 2026, analysts project sales of $51.3 billion, which would represent a 21% growth. A typical seasonal decline in revenue from Q4 to Q1 is not considered alarming due to increased holiday advertising spending [4]. Capital Expenditure Guidance - Investors are particularly focused on Meta's capital expenditure (CapEx) guidance for 2026. In Q3, the company indicated a significant increase in spending, with initial guidance for 2025 set at $71 billion, potentially rising to over $100 billion in 2026. This has raised concerns among investors regarding the effectiveness of past AI investments [5]. - The capital expenditure guidance for 2026 is expected to be a critical metric in the upcoming earnings release, as shares have struggled since the last report in October 2025 [6].

Core Viewpoint - Amazon is the largest e-commerce and cloud infrastructure company globally and continues to be a growth stock that outperforms the market [1] Group 1: Revenue Generation - Amazon primarily generates revenue from its retail business, which operates e-commerce marketplaces in over 24 countries and includes Whole Foods Market and some physical stores [3] - The majority of Amazon's profits come from Amazon Web Services (AWS), which held a 32% share of the global cloud infrastructure market in Q2 2025, significantly ahead of competitors like Microsoft Azure (22%) and Google Cloud (11%) [4] - In the first nine months of 2025, AWS contributed 18% of Amazon's net sales and 60% of its operating profit [4] Group 2: Business Strategies - AWS's high-margin revenues allow Amazon to enhance its subscription-based Prime ecosystem, offering discounts, free shipping, streaming services, and affordable hardware, which strengthens customer loyalty [5] - Amazon's advertising services accounted for 9% of its revenue in the first nine months of 2025, likely operating at higher margins than its retail business, indicating potential for growth as a secondary profit engine alongside AWS [6] Group 3: Recent Performance - Over the past three years, Amazon's stock has outperformed the S&P 500, with its e-commerce and cloud businesses continuing to grow [8] - In 2022, Amazon's net sales increased by only 9%, and its operating margin fell from 5.3% to 2.4%, partly due to inflation affecting consumer spending and a slowdown in cloud spending [9]