Latest news with #MetaPlatforms'
Yahoo
01-08-2025
- Business
- Yahoo
3 stats from Meta's Q2 as Zuckerberg shares ‘superintelligence' vision
This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. Meta Platforms' revenue increased 22% year over year for a total of $47.52 billion in Q2 2025, according to an earnings statement, beating Wall Street expectations. The online commerce vertical was the largest contributor to year-over-year growth in ad revenue, with a 'meaningful percent' of its ad revenue coming from campaigns using the company's generative artificial intelligence (AI) features, CEO Mark Zuckerberg said on an earnings call. The tech giant attributed the strong performance of its underlying advertising business to the power of AI to drive greater efficiency. Improvements to its AI-powered recommendation engine for ads and content has driven more ad conversions on Instagram (roughly 5%) and Facebook (3%) and led to increases in time spent on both platforms. By the numbers 22% Year-over-year percentage increase of Meta's Q2 revenue, which was $47.52 billion. Revenue grew 16% in Q1 11% Year-over-year percentage increase in ad impressions delivered across Meta's Family of Apps, up from 5% in Q1 3.48B Family daily active people (DAP) on average in June 2025, up 6% year over year Meta's robust growth demonstrates that the company not only weathered the uncertainty that has roiled the entire economy, but could perhaps benefit from it, as marketers looked for lower cost, higher performing advertising, according to eMarketer senior analyst Minda Smiley. 'Its strong quarter signals that the broader digital advertising market might not yet feel the pain from tariffs, though that could change. And Meta, with its massive userbase and savvy advertising platform, is likely to fare better than smaller social networks should advertiser pullbacks set in later this year,' Smiley said in emailed comments. Adoption of generative AI ad creative tools continues to grow, with nearly 2 million advertisers using video generation features Image Animation and Video Expansion. Text generation tools are also generating strong results, according to the company. While the expansion of AI is driving growth across the company's revenue centers, it is also growing expenses, which Meta now expects to be in the range of $114 to $118 billion for the full year — a growth rate of 20% to 24% year over year. Infrastructure is the largest single driver of growth. Despite the high cost, Meta is still full-steam ahead on AI, with Zuckerberg using both the earnings call and a separate message on social media to hype the next stage of the technology. Meta believes that superintelligence, defined as AI that surpasses human intelligence, is now in sight. 'Meta's vision is to bring personal superintelligence to everyone — so that people can direct it towards what they value in their own lives. We believe this has the potential to begin an exciting new era of individual empowerment,' Zuckerberg said on the call.
Yahoo
30-07-2025
- Business
- Yahoo
Qualcomm Earnings: Non-Smartphone Growth
Key Points Qualcomm beat analyst expectations for the third quarter of fiscal 2025, but the stock sank. The company booked 23% revenue growth in its non-smartphone business as demand for automotive and Internet of Things products boomed. Qualcomm continues to diversify away from smartphones with pushes into PCs, augmented reality headsets, and data centers. 10 stocks we like better than Qualcomm › Here's our initial take on Qualcomm's (NASDAQ: QCOM) third-quarter financial report. Key Metrics Metric Q3 2024 Q3 2025 Change vs. Expectations Revenue $9.4 billion $10.4 billion +10% Beat Earnings per share (adjusted) $2.33 $2.77 +19% Beat Non-smartphone revenue $2.2 billion $2.7 billion +23% n/a QTL revenue $1.27 billion $1.32 billion +4% n/a Diversifying Away From Smartphones Qualcomm beat analyst expectations for revenue and earnings in the third quarter of fiscal 2025 thanks in part to strong growth outside of its core smartphone-related business. The company's chips power a sizable fraction of smartphones around the world, but other revenue streams are growing much faster. Revenue related to smartphones grew by 7% year over year to $6.3 billion. Meanwhile, automotive revenue surged by 21% to $984 million, and Internet of Things revenue jumped 24% to $1.7 billion. The company's next-generation augmented reality platform was recently on display powering Meta Platforms' (NASDAQ: META) AI smart glasses, enabling a 1 billion parameter AI model to be run locally. Qualcomm is also making a push into the PC industry. The company's Snapdragon X platform is expected to power more than 100 models by the end of 2026 from all of the major PC OEMs. Revenue from the technology licensing segment was $1.32 billion, up 4% year over year. Growth across Qualcomm's segments helped push adjusted earnings per share up 19% year over year in the third quarter. Immediate Market Reaction Despite a solid third-quarter report that featured better-than-expected revenue growth, shares of Qualcomm were down about 5% in after-hours trading on Wednesday. Qualcomm stock has been a laggard so far this year, up just 4% year to date going into the third-quarter report. What to Watch On top of Qualcomm getting its chips into PCs and augmented reality devices, the company is going after the AI infrastructure market as well. Qualcomm offers server CPUs as well as AI inference chips, and the company announced the acquisition of Alphawave Semi in June. Alphawave specializes in high-speed wired connectivity products, which will help fill out Qualcomm's data center portfolio as demand for AI infrastructure booms. For the fourth quarter, Qualcomm expects to produce revenue between $10.3 billion and $11.1 billion, along with adjusted EPS between $2.75 and $2.95. While Qualcomm stock didn't cooperate in after-hours trading, the company is producing solid results as it diversifies its business and goes after the AI opportunity. Helpful Resources Full earnings report Investor relations page Should you invest $1,000 in Qualcomm right now? Before you buy stock in Qualcomm, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Qualcomm wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Qualcomm. The Motley Fool has a disclosure policy. Qualcomm Earnings: Non-Smartphone Growth was originally published by The Motley Fool
CNBC
30-07-2025
- Business
- CNBC
What top Wall Street analysts are watching in Meta's earnings out Wednesday
Wall Street remains bullish on Meta Platforms' longer-term strategy, but analysts remain watchful of how the company's artificial intelligence efforts could weigh on its second-quarter results out Wednesday. Meta shares have rallied 20% this year through Tuesday, more than twice the return in the S & P 500, as concerns about economic growth, inflation and tariffs have dissipated. Of the 77 analysts covering Meta, 63 rate it either either a buy or a strong buy. Only seven have a hold rating. While sentiment remains strong, some analysts expect Meta's recent AI spending spree and $14.3 billion ScaleAI investment to potentially overshadow second-quarter earnings. Revenue growth in the period likely slowed to 15%, down from 22% a year ago, according to LSEG. Investors will listen closely to Meta CEO Mark Zuckerberg's explanation for the Instagram parent's shifting AI strategy. Take a look at how the Street is positioned toward Meta ahead of results: Morgan Stanley: overweight rating, price target to $750 from $650 Analyst Brian Nowak sees generative AI driving higher monetization and engagement levels and, eventually, faster revenue growth. Among the keys to Meta outperforming in the second half of the year are the launch of its next-generation Llama AI models and new AI products "to help the market better understand the [return on invested capital] of the recent heavy hiring and capex investments," he said. "We raise our revenue estimates 3%/6% in '25/'26 driven by better-than-expected ad checks as tariff concerns alleviated, continued GPU enabled ad innovation, and improving FX dynamics," Nowak wrote in a July 20 note to clients. "These higher top-line estimates flow through to the bottom line as we raise EPS 5%/7% in '25/'26. With these changes, we arrive at a $750 PT after rolling our valuation to mid-year." Bank of America: buy, $775 price target Analyst Justin Post's price target implies Meta shares could rise another 11% from Tuesday's close of $700. "With AI [return on investment] a key stock sentiment driver, 2Q positives could include: 1) Ad rev upside reinforcing confidence in Meta's AI ad engine, 2) strong road map for 2H ad products, 3) optimism on new revenue opportunities for AI (Llama licensing, subscriptions, etc.) With Street likely anticipating 2Q revenue upside, risks are high [that] expectations and higher expenses offset revenue revisions. Also, EU regulatory uncertainty is likely to continue," Post wrote in a note late last week. Post added that he continues to see Meta as "one of the best AI opportunity stocks, with potential revenue upside as AI capabilities are integrated into the ad stack." Jefferies: buy, price target to $845 from $790 The investment bank remains bullish on Meta, but said that Facebook Reality Labs investments should weigh on the company's near-term profit margins. Meta's ScaleAI investment and AI hiring spree could also pressure earnings, analyst Brent Thill said in a July 16 note. "AI hiring spree signals urgency, though near-term margin pressure is likely. Capex to remain elevated ($68.6B/$74.2 in FY25/26) but bullish on its LT ROI," Thill wrote, adding that new ad dollars are already pouring into Meta's mobile ad campaigns and that the company is seeing "deep engagement" across its Instagram, Messenger and WhatsApp platforms. Rosenblatt Securities: buy, $918 price target Analyst Barton Crockett's price target suggests Meta shares might rally another 31% from Tuesday's close. Crockett said that Meta's free cash flow should get a boost from the tax credits for capital spending in the Trump administration's One Big Beautiful Bill Act. Meta "is spending many tens of millions of dollars to hire an all star AI staff. That spending could pose a risk to the P & L, or perhaps be a sign that CEO Mark Zuckerberg is confident in AI-driven cost savings to spend the money without blowing up Meta's cash flow," Crockett said in a July 22 note. Deutsche Bank: buy, $770 price target Meta's "AI talent war [is] center stage," analyst Benjamin Black wrote in a July 21 note to clients. "AI enhancements via Advantage+ are increasingly manifesting themselves in the form of improved return on ad spend (ROAS), which we expect will be a durable source of growth for Meta going forward, as Advantage+ becomes the default campaign-setup across more advertisers this year," Black said. "Additionally, deep auction dynamics are largely offsetting the impact of any large buyers exiting, with e-commerce spend growth on Meta accelerating in May and June, returning to pre-liberation day levels after the drop-off in April."
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Business Standard
30-07-2025
- Business
- Business Standard
Australia adds YouTube to under-16 social media ban ahead of Dec rollout
The new rules, set to take effect on December 10, will now apply to YouTube alongside Meta Platforms' Facebook and Instagram, Snapchat, TikTok, and X New Delhi Australia has announced that YouTube will be included in the country's forthcoming ban on social media platforms for children under the age of 16, marking a reversal after the Google-owned site was initially excluded from the legislation. The new rules, set to take effect on 10 December, will now apply to YouTube alongside Meta Platforms' Facebook and Instagram, Snapchat, TikTok and X. 'Social media is doing social harm': PM Albanese Social media is causing harm, and while this move alone will not solve everything, it will help, Prime Minister Anthony Albanese said at a press conference on Wednesday (local time), reported Bloomberg. Under the legislation, platforms that fail to stop underage users from holding accounts may face fines of up to A$49.5 million (US$32.2 million). YouTube's initial exclusion sparked criticism eSafety Commissioner flagged risk to youth Last month, the online safety watchdog urged authorities to reconsider YouTube's immunity. According to a report by Bloomberg, eSafety Commissioner Julie Inman Grant pointed to data indicating that YouTube is both the most-used platform among young Australians and the largest source of online harm for them. Online games and education apps excluded The ban does not apply to online gaming, messaging, education or health-related applications. Communications Minister Anika Wells explained that these platforms have been exempted from the age restrictions because they pose fewer social media-related harms to children under 16. YouTube Kids, a version of the platform designed for children and offering parental control tools, will also remain outside the scope of the legislation. YouTube maintains it is not social media YouTube has pushed back against its inclusion in the under-16 social media ban, arguing that it should not be classified as a social media platform. A company spokesperson told Reuters via email that YouTube is primarily a video-sharing service offering a wide library of free, high-quality content, much of which is increasingly viewed on television screens. The platform, they emphasised, is not social media. Renewed tensions with Alphabet likely The decision may reopen tensions with Google parent Alphabet, which in 2021 threatened to withdraw certain services from Australia in protest against a law requiring tech companies to pay publishers for news content featured in search results.
Express Tribune
28-07-2025
- Politics
- Express Tribune
Google, Meta escape Buffalo shooter lawsuit
Several social media companies should not be held liable for helping an avowed white supremacist who killed 10 Black people in 2022 at a Buffalo, New York grocery store, a divided New York state appeals court ruled on Friday, reported Reuters. Reversing a lower court ruling, the state Appellate Division in Rochester said defendants including Meta Platforms' Facebook and Instagram, Google's YouTube, and Reddit were entitled to immunity under a federal law that protects online platforms from liability over user content. The case arose from Payton Gendron's racially motivated mass shooting at Tops Friendly Markets on May 14, 2022. Relatives and representatives of victims, as well as store employees and customers who witnessed the attack, claimed the defendants' platforms were defective because they were designed to addict and radicalise users like Gendron. Lawyers for the plaintiffs did not immediately respond to requests for comment. Other defendants included Alphabet, Discord, 4chan, Snap, and Twitch, all of which Gendron used, the mid-level state appeals court said. Writing for a 3-2 majority, Justice Stephen Lindley said holding social media companies liable would undermine the intent behind Section 230 of the federal Communications Decency Act, to promote development of and competition on the internet while keeping government interference to a minimum. While condemning Gendron's conduct and "the vile content that motivated him to assassinate Black people simply because of the color of their skin," Lindley said a liability finding would "result in the end of the Internet as we know it." "Because social media companies that sort and display content would be subject to liability for every untruthful statement made on their platforms, the Internet would over time devolve into mere message boards," he wrote. Justices Tracey Bannister and Henry Nowak dissented, saying the defendants force-fed targeted content to keep users engaged, be it videos about cooking or puppies, or white nationalist vitriol.
