Meta reports stellar earnings

[Adam Kay]

A exceptional result from Meta platforms, illustrated clearly in the below table. Record revenue of 40.6B, +19% YoY coupled with operating efficiency(lower relative costs), driving an operating margin of 43% and net income +35% YoY higher. EPS of $6.03 is significantly higher than consensus expectations of $5.29
The outlook: The next quarter revenue is expected to be $45-48B with significant capital expenditure(this will be data centres)

Meta has beaten earnings and revenue expectations for the 7th quarter in a row
Margins  continue to grow and the company valuation is quite modest vs it’s growth rate and market dominance.
The user count increased 150 million to 3.29B and revenue per user is growing

[exIM]

Thanks Adam, next year will be very interesting with all the big boys building out the nextgen AI DC's. I wonder if the energy sector is worth another look

[Adam Kay]

We are already looking at the uranium suppliers(miners). The commodity, being the power generation itself wouldn’t be a big profit driver but the much rarer ‘product’ looks promising.