Hudson Yards
– July 28, 2025

Alright. I am excited to be talking to you guys about one name reporting Wednesday this week after the close. They are an absolute Hoover vacuum of advertising dollars worldwide. This company is Meta!

They are looking at a $44.8 billion revenue number, a $5.87 earnings per share number. That $44.8 is almost entirely advertising dollars, the bread and butter of their business. They are working through five major points of their business that I want to talk about. But at first, I wanna address how the stock has been performing.

They’re up 30% since the last earnings call at the April. Keep in mind things were pretty beaten down back then. There’s a lot of uncertainty in the economy, a lot of talk about tariffs. They came out saying we’re not worried about it, and we it’s not gonna be a factor for us. The stock went zooming. I don’t anticipate any kind of major move coming out of this call, but I am bullish over the long run.

I think the 15 to 19% growth that they’ve had in 2025 is a much more realistic trajectory over the next twelve months from here. By all analysts review I could find are overwhelmingly giving it a buy rating. Price ranges from $750 to $850. I think we could be right in there around 800 in about a year. There is a lot of room to run for Meta.

Let’s dive into those five points, though.

They are all wrapped in AI as Meta is making massive investments in AI. I wanna hear more about this too on the call. What is the capital expenditure number? We saw it tick up in Google. Is Meta facing a similar circumstance as they build out data centers and their AI capability? And as we’ve all seen in the news, acquire AI talent and leadership.

First thing though, improving their ad products, making them better, more refined, more relevant for customers and for users. This is key to part of their AI strategy. The other thing is basically creating AI agents to do the advertising for customers. This means removing agencies, and the middle men when building and running ads. You tell Meta what you want, it’ll run an ad, creative copy, targeting everything for you. The question is, are they doing that, what is the adoption? And if so, is the return on ad spend better for those ads versus how it was done in the past? The second is creating better user experiences, refining their algorithm using AI, making the products more sticky, all the platforms. Are people engaging more? What are the monthly actives look like? What is the time spent on the platform? Are they engaging with video, text, messenger? How is AI impacting that? And are you truly moving the needle and making the platform more sticky?

This is super important as Meta basically only sells ads and attention, so this needs to be going up if they’re making these major, capital expenditures in AI. The third business messaging, I’m not even getting into it because I wanna get to the fourth.

That is Meta AI itself. This is the open source model called Llama that developers are able to connect to via API. This is driving the standalone application, Meta AI.

Speaking of that app, Go check it out. You can talk to it. The latency is very good. It’s crisp. You do feel like you’re in the movie “Her” for a minute. It’s a little scary, but it is really, really good and a good segue into my last point, which is meta AI devices.

Obviously, the glases being first and foremost — a partnership with Ray Ban and Oakley as an extension to that application and to the leveraging of your own personal AI assistance through wearables like glasses. That is coming as we go, and I wanna hear more about that, how the engagement has been, how the sales have been, and what the plan is there.

I will be doing a post earnings call as well as well as covering all the other big tech names reporting this weekend next. Stay tuned for updates on that. Be good out there.