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Meta Platforms:Quarterly Results/2025 Q2: Difference between revisions
→Meta stands to benefit from AI but there's short-term drag on earnings
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* Needham [https://thefly.com/permalinks/entry.php/id4153762/5629276161/META-Meta-Platforms-just-upgraded-at-Needham-heres-why believes] Meta's AI strategy "wastes capital and adds risks" and believes its margins and free cash flow are under structural downward trend. | * Needham [https://thefly.com/permalinks/entry.php/id4153762/5629276161/META-Meta-Platforms-just-upgraded-at-Needham-heres-why believes] Meta's AI strategy "wastes capital and adds risks" and believes its margins and free cash flow are under structural downward trend. | ||
* Oppenheimer [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-raised-to-775-from-665-at-oppenheimer-93CH-4097132 projects] Meta's CapEx to come in at $68 billion and $85 billion in 2025 and 2026, respectively. | * Oppenheimer [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-raised-to-775-from-665-at-oppenheimer-93CH-4097132 projects] Meta's CapEx to come in at $68 billion and $85 billion in 2025 and 2026, respectively. | ||
==== Usage of Meta Platforms is rebounding, aided by AI ==== | |||
Deutsche Bank research [https://news.futunn.com/en/post/59437563/meta-s-q2-earnings-preview-advertising-revenue-exceeds-expectations-ai?level=1&data_ticket=1753353470341042 found] that usage of Meta Platforms is rebounding, aided by AI: | |||
* Facebook: Facebook's global conversation count declined 5% year-over-year, an improvement from the 7% drop in the first quarter. Total user time spent also fell 3% year-over-year, better than the 6% decrease recorded in Q1. | |||
* Instagram's global conversation count rose 4% year-over-year, a notable improvement from flat growth in the first quarter. Total time spent by users increased 11% year-over-year, well above the 6% growth seen in Q1. | |||
== Competitor expectations and results == | == Competitor expectations and results == | ||