Is Meta stock a buy?
Meta's AI spending has been intentional, and although it has weighed on short-term profits and free cash flow (with other factors also affecting its recent profitability), the company is now showing the potential of its strategy. There could be more in the near future. Meta has reportedly been looking to sell excess AI computing capacity. Management pointed out that, given the current demand for these services, the company could sell compute at a significant premium over what it paid for it.
Meanwhile, the core advertising business remains healthy, and Meta continues to grow its ecosystem. Second-quarter revenue increased by 28% year over year to $60.8 billion, while daily active people came in at 3.60 billion, 3% higher than the year-ago period. Meta's deep ecosystem is a strong competitive advantage, offering it numerous monetization opportunities. Lastly, the company has moved closer to addressing another issue.Meta has faced lawsuits over alleged social media harm, but it recently reached a settlement with many of the plaintiffs. Meta agreed to pay about $18 billion over a 10-year period -- a fairly small amount for a company that generates more than $60 billion in annual profits -- and put more guardrails on its websites and apps to protect young users. For all those reasons, Meta's stock looks attractive for investors willing to hold onto it for the long term.
$NVDAB
$META
#CircleMints500MUSDCOnSolana #CircleTetherFreezeBitgetHackerWallet #BlackRockBuildsTokenizedPortfoliosForOndo #Metaplane #TrumpRejectsIranHormuzReopening
Meta's AI spending has been intentional, and although it has weighed on short-term profits and free cash flow (with other factors also affecting its recent profitability), the company is now showing the potential of its strategy. There could be more in the near future. Meta has reportedly been looking to sell excess AI computing capacity. Management pointed out that, given the current demand for these services, the company could sell compute at a significant premium over what it paid for it.
Meanwhile, the core advertising business remains healthy, and Meta continues to grow its ecosystem. Second-quarter revenue increased by 28% year over year to $60.8 billion, while daily active people came in at 3.60 billion, 3% higher than the year-ago period. Meta's deep ecosystem is a strong competitive advantage, offering it numerous monetization opportunities. Lastly, the company has moved closer to addressing another issue.Meta has faced lawsuits over alleged social media harm, but it recently reached a settlement with many of the plaintiffs. Meta agreed to pay about $18 billion over a 10-year period -- a fairly small amount for a company that generates more than $60 billion in annual profits -- and put more guardrails on its websites and apps to protect young users. For all those reasons, Meta's stock looks attractive for investors willing to hold onto it for the long term.
$NVDAB
$META
#CircleMints500MUSDCOnSolana #CircleTetherFreezeBitgetHackerWallet #BlackRockBuildsTokenizedPortfoliosForOndo #Metaplane #TrumpRejectsIranHormuzReopening
