$Meta Platforms(META.US)Context: Q3 beat expectations, and the core franchise remains solid. Ads stayed strong, with gro…

$Meta Platforms(META.US)

Context: Q3 beat expectations, and the core franchise remains solid. Ads stayed strong, with growth driven mainly by ad pricing (+14%), accelerating for the third straight quarter. Q4 total revenue guide of $73-76bn meets the more bullish buy-side bar of $74-75bn. While Meta’s revenues surged by 26%, its operating income was negatively affected, giving investors an ambiguous perspective on the firm’s financial health. Meta expects more revenue as AI investments keep growing. Meta has made changes to its estimated annual investment, which now stands at $135 billion to $145 billion compared to the previous figure of $130 billion to $145 billion. The analysts had predicted that the spending was around $138.27 billion. The concentration on this part is primarily towards the data centers and other devices used to train the system and AI assistants. Audience growth was slightly disappointing, as daily active users on Meta’s apps reached 3.64 billion, slightly underexpectations.

My Trade: I'm holding Meta for the long term and this current price movement/range doesn't significantly affect my decision. I'm waiting for a lower price, preferably lower than $700 to buy more to give myself more margin to work with.

Takeaway: September’s release of Muse, Meta’s personal AI assistant, helped the stock record its strongest performance in a while. The software can handle tasks such as sorting through emails, searching online and identifying deals on products. None of those abilities are particularly new, but Meta can introduce them to an audience numbering in the billions. @Captain's Treasure