"Meta Platforms financial results have been impressive in the first half of the year. Its strong growth has been fueled by robust advertising demand and an engaged user base across its social media apps. The company, which owns Facebook, Instagram, WhatsApp, Messenger, and Threads, is making significant investments in artificial intelligence (AI) and innovative ad formats -- all while revenue and earnings are soaring. No wonder the Street has been buying up the stock."
"Meta Platforms remains one of the world's largest digital ad sellers -- an advertising-led business that can grow quickly when marketers spend and pull back just as fast when they don't. That mix of strength and fragility, however, is the point here. While Meta's execution in core ads has been impressive lately, two structural realities make its earnings power more volatile than peers in the so-called "Magnificent Seven":"
Meta Platforms delivered strong financial results in the first half, with revenue and earnings rising sharply driven by robust advertising demand and an engaged user base across Facebook, Instagram, WhatsApp, Messenger and Threads. Revenue rose 22% year-over-year to $47.5 billion in Q2 2025, operating income increased 38%, and operating margin expanded to 43% as ad demand remained healthy. The company is making significant investments in AI and innovative ad formats while smaller advertisers and broad vertical/geographic demand contributed to growth. Substantially all revenue comes from advertising, exposing earnings to advertising-cycle volatility and dependence on distribution controlled by Apple and Alphabet. Competition for user attention adds further risk, supporting a lower price-to-earnings multiple in the 20s versus higher peer premiums.
Read at The Motley Fool
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