Zacks Investment Ideas feature highlights: Meta Platforms
Chicago, IL – July 31, 2025– Today, Zacks Investment Ideas feature highlights Meta Platforms META.
Meta's Earnings Streak Continues, Ad Business Performs
Zacks Rank #1 (Strong Buy) stock Meta Platforms crushed earnings yet again on Wednesday evening, delivering EPS of $7.14 versus estimates of $5.89 and revenue of $47.52 billion versus estimates of $44.83 billion. Currently, META shares are up ~8.5%, in line with what the market was anticipating. The top and bottom-line earnings beat again prove that META is one of the most consistent growth engines on Wall Street, with investors enjoying the company's eleventh consecutive earnings beat.
With double-digit EPS and revenue growth, it's difficult for investors to find a company growing as fast, consistently, and with such liquidity as META. Because META has this rare trifecta, institutional investors are likely to continue to pile in and use it as a 'hedge fund hotel.'
META Ad Business Remains Robust
The most significant item investors watch for in a Meta earnings report is ads. Not only does ad revenue comprise the lion's share of Meta's revenue, it also represents how Meta's massive AI bets are actually impacting the company. Ad impressions continued to increase in Q2, as impressions jumped 11% year-over-year, helped by Meta's AI optimization efforts.
Additionally, Meta is making more off these impressions, with an average price per ad increase of 9% year-over-year. Overall, the core advertising engine is firing on all cylinders, with Meta generating 22% year-over-year growth in the segment.
It's clear from Meta's price action over the past few months that investors believe CEO Mark Zuckerberg's massive pivot to AI will work in the long term. As META shares break out from yet another base structure, a reasonable target into 2026 is between $900 and $1,000 per share (based on Fibonacci extensions).
META: Potential Headwinds
Management has guided that expense growth will accelerate next year with a substantial CAPEX increase, potentially impacting margins negatively. Additionally, Meta's 'Reality Labs' segment continues to hemorrhage cash, continuing a troubling trend and costing the company $4.5 billion. While Reality Labs' poor financial performance is something for investors to watch, it is merely a drop in the bucket of Meta's massive business, and investors should mainly focus their attention on Meta's core ad business.
META: What to Look for Moving Forward
From a CAPEX spending perspective, META is among the companies making the most aggressive bets on AI. CAPEX is expected to increase yet again next quarter. Thus far, investors are applauding the bold strategy and aggressive spending. That said, investors will want to continue to see strong earnings as a result.
Bottom Line
Meta Platforms continues to demonstrate exceptional financial performance, driven by its robust ad business and significant AI investments.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Meta Platforms, Inc. (META): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Vitesse (VTS) Q2 Revenue Jumps 23%
Key Points - Earnings per share (non-GAAP) and revenue (GAAP) both beat analyst estimates, with revenue boosted by a major one-time litigation settlement. - Production volume saw a significant lift from the Lucero acquisition, driving overall output up 40% compared to Q2 2024. - The dividend remains unchanged at $0.5625 per share, with balance sheet strength supporting ongoing shareholder returns. These 10 stocks could mint the next wave of millionaires › Vitesse Energy (NYSE:VTS), a company specializing in non-operated oil and gas investments, posted its second quarter earnings results on August 4, 2025. The headline news was a substantial revenue (GAAP) and earnings (non-GAAP) beat, with actual results boosted by a large, non-recurring litigation settlement. Management noted that, while underlying operations were strong, top-line growth was notably aided by a $24 million litigation settlement, with $16.9 million of that recognized as revenue. Overall, Vitesse delivered operational improvements in line with its stated strategy, but the one-off gain skews the degree of progress shown in the headline metrics. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP, Diluted) $0.18 $0.15 N/A EPS (GAAP, Diluted) $0.60 $0.33 81.8 % Revenue (GAAP) $81.8 million $71.5 million $66.6 million 23.0 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Understanding Vitesse Energy's Core Business and Strategy Vitesse Energy operates as a non-operated investor in oil and natural gas wells. This means it primarily holds interests as a non-operator in wells managed by other companies. This model is central to its business, enabling Vitesse to spread risk, reduce direct operating costs, and maintain flexibility in how it allocates capital. Recent focus areas for Vitesse include acquiring additional non-operated interests in key shale plays, managing commodity price risk through hedging, and carefully controlling costs. Strategic acquisitions, such as the Lucero Energy deal completed on March 7, 2025, have been pivotal in boosting output and expanding the company's footprint. Key success factors for Vitesse are disciplined capital allocation, strong relationships with well operators, an active hedging program, and a firm commitment to shareholder returns—primarily through steady dividends. Quarterly Highlights: Growth, One-Time Gains, and Financial Discipline The quarter saw Vitesse complete the integration of the Lucero Energy assets, which directly contributed to marked operational growth. Production averaged 18,950 barrels of oil equivalent per day, a 40% increase from Q2 2024 and a 27% jump over the previous quarter (Q2 2025 vs Q1 2025). This rise was mainly driven by the Lucero acquisition, completed in March 2025, and reflects Vitesse's focus on buying producing assets rather than starting new operations itself. Revenue (GAAP) was sharply higher than both last year and analyst projections, but it is crucial to note that $16.9 million of revenue came from a one-time litigation settlement. Adjusted net income, which strips out the impact of non-cash and non-recurring items, was $18.4 million (non-GAAP), compared to $24.7 million in GAAP net income, highlighting the size of the one-off benefit. Vitesse's risk management stood out, with the company expanding its hedging program amid volatile oil prices. About 71% of 2025 oil production and nearly half (49%) of natural gas output for the remainder of the year were hedged at favorable rates, reducing exposure to price swings. As a result, the realized price for hedged oil was $64.21 per barrel, better than the $59.50 per barrel received for unhedged volumes. Gains on commodity derivatives further added $5.3 million to results, while the company also reported an unrealized derivative gain of $13.2 million. Cost management remains a focus, though some expenses did rise due to higher output and acquisition integration. Lease operating expense—a measure of the direct costs of running wells—rose 60% year over year to $19.6 million. General and administrative costs fell significantly after accounting for litigation reimbursements, but underlying core G&A spending is running at about $3.50 per barrel of oil equivalent. Despite rising costs, net debt dropped to $104 million and the net debt to adjusted EBITDA ratio (non-GAAP) improved to 0.43x, well below its target of 1.0x for Net Debt to Adjusted EBITDA ratio (non-GAAP). Liquidity was $146.0 million, providing flexibility for future acquisitions or capital returns. An important feature in the company's strategy is its dividend. Management declared a quarterly payout of $0.5625 per share, unchanged from previous quarters. This maintains an annualized dividend rate of $2.25 per share. The steady dividend is a visible sign of the company's commitment to returning capital to shareholders, supported by free cash flow (non-GAAP) of $21.9 million. Management continues to emphasize that 'our product is our dividend,' underlining both policy and marketing as a core part of the business model. Looking Ahead: Guidance and Key Watchpoints Management reaffirmed full-year guidance provided last quarter. Expected average daily production is forecast at 15,000 to 17,000 barrels of oil equivalent per day, with oil making up 64–68% of output. Capital expenditures are projected between $80 million and $110 million, a range that builds in flexibility for opportunistic acquisitions if favorable deals arise. Management did not adjust production or spending guidance after the strong quarter, preferring a cautious approach amid continued commodity price volatility and recent cost pressures. No material constraints were reported on the company's ability to maintain either its capital expenditure or dividend levels, with balance sheet strength and available liquidity providing significant headroom. Investors in Vitesse will likely monitor two areas in coming quarters: underlying operational trends, once one-time gains roll off; and how normalized costs evolve as the acquisition is further integrated. The $24 million litigation settlement received is not expected to recur, so ongoing trends in free cash flow and earnings will be of particular interest in the remainder of the year. The quarterly dividend was confirmed at $0.5625 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,019%* — a market-crushing outperformance compared to 178% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Vitesse Energy. The Motley Fool has a disclosure policy.
Globe and Mail
2 hours ago
- Globe and Mail
agilon health, inc. Investigated for Securities Fraud Violations - Contact the DJS Law Group to Discuss Your Rights
The DJS Law Group announces that it is investigating claims on behalf of investors of agilon health, inc. ('Agilon' or 'the Company') (NYSE: AGL) for violations of the securities laws. INVESTIGATION DETAILS: The investigation focuses on whether the Company issued misleading statements and/or failed to disclose information pertinent to investors. Agilon announced on August 4, 2025, that President, CEO, and Board Director Steven Sell stepped down from his positions. The Company added, 'In a separate press release, the Company today also issued its second quarter 2025 earnings results. As part of that announcement, and in conjunction with this leadership transition, the Company is withdrawing its previous full year 2025 earnings guidance.' Based on this news, shares of Agilon fell more than 27% in after hours trading following the Company's release. If you are a shareholder who suffered a loss, contact us to participate. WHY DJS LAW GROUP? DJS Law Group's primary focus is to enhance investor return through balanced counseling and aggressive advocacy. We specialize in securities class actions, corporate governance litigation, and domestic/international M&A appraisals. Our clients are some of the largest and most sophisticated hedge funds and alternative asset managers in the world. The litigation claims of our clients are extraordinarily valuable assets that demand respect, focus, and results. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
Globe and Mail
3 hours ago
- Globe and Mail
SBAC Earnings Jump on Strong Sales
Key Points Revenue (GAAP) reached $698.98 million, surpassing the analyst estimate by 4.1% (GAAP), driven by robust domestic leasing and higher site development activity. Adjusted Funds From Operations (AFFO) per share was $3.17 (non-GAAP), though down 3.6% year over year due to higher interest expenses. Full-year 2025 guidance for revenue, AFFO (non-GAAP), and Adjusted EBITDA (non-GAAP) was raised on strong backlogs and the early Millicom site acquisition closing. These 10 stocks could mint the next wave of millionaires › SBA Communications (NASDAQ:SBAC), a leading owner and operator of wireless communications towers, announced results for the second quarter on August 4, 2025. GAAP revenue was $698.98 million, above the expected $671.15 million (GAAP) and up 5.8% year over year. Diluted earnings per share (GAAP) were $2.09, above the $2.13 consensus (Non-GAAP) EPS estimate, but net income jumped 41.5% year over year. Adjusted Funds From Operations (AFFO) per share came in at $3.17, though declining from the prior year. Management raised financial guidance for full year 2025 across all key metrics, reflecting strong domestic demand, accelerated site acquisitions, and favorable leasing trends. The quarter showed solid progress in several business lines, despite margin pressures and increased interest costs. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS – Diluted (GAAP) $2.09 $2.13 $1.51 38.5 % Revenue $698.98 million $671.15 million $660.48 million 5.8% Adjusted EBITDA $475.5 million $467.1 million 1.8% AFFO per Share $3.17 $3.29 (3.6 %) Tower Cash Flow $511.2 million $503.9 million 1.4 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Understanding SBA Communications and Its Business Model SBA Communications owns, operates, and leases wireless tower infrastructure to mobile carriers and other wireless service providers. Its primary business is renting antenna space on its towers, a model that delivers stable, recurring revenue. Site leasing generates most of its operating profit, while the company also provides site development services, such as construction and network upgrades, to wireless carriers. In recent years, SBA Communications has focused on three major areas: expanding its international tower footprint, maximizing tower capacity by increasing colocation (multiple tenants per tower), and securing long-term control of the land under its towers. The company also closely follows wireless technology trends, like the rollout of 5G networks, as these drive demand for more tower space and additional equipment installations. Quarter Highlights: Growth Drivers and Strategic Moves In Q2 2025, site leasing remained the core of SBA Communications' business, accounting for 97.4% of segment operating profit. Domestic site leasing revenue grew to $469.8 million, up 1.4% from a year ago. International site leasing revenue was $162.0 million, a slight decrease on a reported (GAAP) basis, but up 4.0% when adjusting for foreign currency movements. The tower cash flow margin, a key indicator of profitability for tower operations, held steady at 81.0% (non-GAAP). The services segment, which includes site development, saw rapid growth as revenue nearly doubled to $67.2 million. This surge reflects increased carrier investment in network upgrades and new infrastructure. However, these projects have lower margins compared with core site leasing -- the spike in services revenue contributed to an overall decline in company-wide Adjusted EBITDA margin compared to Q2 2024. The company accelerated the integration of more than 4,300 newly acquired sites from the Millicom deal several months ahead of schedule. This brought the total tower count up to 44,065 as of June 30, 2025. It also advanced plans to sell its Canadian tower assets, entering into an agreement on July 21, 2025 to sell all 369 towers and related operations in Canada, with the transaction expected to close in Q4 2025, expecting this divestiture to be immediately beneficial to AFFO per share after closing, as stated by management in the earnings release. These actions demonstrate a strategy of growing internationally while exiting less efficient markets to focus on higher-return regions. Capital allocation remained active, with 799,000 shares repurchased and $1.45 billion authorized for future buybacks. Quarterly dividends held steady at $1.11 per share. The company maintained a high level of debt, with a net debt to adjusted EBITDA ratio of 6.5x, and net cash interest expense rose 23.2% year over year from Q2 2024 to $111.5 million. Management emphasized that the balance sheet remains strong. Strategic Business Areas and Their Impact Site leasing continues to dominate company profits, supported by the recurring nature of tower rental agreements with wireless carriers. This stability is underpinned by long-term contracts. SBA Communications closely monitors lease churn and seeks to add new tenants through strategic marketing and infrastructure upgrades. International expansion is a core strategy. While most new towers come from acquisition -- as with the Millicom deal -- the company also constructs new sites in regions where wireless networks are maturing. Diversifying across 13 countries insulates SBA Communications from market-specific risks and taps into growing demand for wireless infrastructure in developing regions. Maximizing tower capacity is another focus. By increasing the average number of tenants per tower, SBA Communications boosts revenue from existing assets with limited additional cost. About 75% of new U.S. leasing activity in Q1 2025 derived from colocations, which generate higher incremental revenue than simple contract amendments. Often prompted by requirements to meet 5G coverage mandates. The company also invests in long-term land control through ownership and long-term leases. This provides operational security, cost predictability, and margin protection well into the future. About 72% of tower sites are on land with over 20 years of control remaining as of December 31, 2024, and the company reported ongoing spending to extend lease terms where possible. Looking Ahead: Guidance and Market Trends Management raised its full-year 2025 financial outlook, expecting total revenue (GAAP) to reach $2.78–2.83 billion, AFFO per share (non-GAAP) of $12.65–13.02, and adjusted EBITDA of $1.91–1.93 billion. These increases reflect strong current leasing backlogs, robust site development, early benefits from the Millicom site acquisition, and positive foreign currency effects. The Canadian asset sale, which is still pending, is not yet included in the outlook. But overall commentary remains constructive for continued growth in the U.S. Key risks highlighted this period include margin pressures, flat-to-slow international organic growth due to carrier churn in markets like Brazil, and persistently high debt levels that heighten interest expenses. Nonetheless, strong domestic leasing demand, expanding service backlogs, and high levels of tower colocation suggest ongoing near-term growth. SBA Communications does pay a dividend, and the current quarterly dividend remains at $1.11 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,019%* — a market-crushing outperformance compared to 178% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
