Meta reported third-quarter results that included top-line growth of 26% to $64.6 billion and adjusted operating margins contracting 500 basis points to 35%. Rising AI-related costs continue to drive the margin contraction. Meta expects fourth-quarter sales to grow between 21%-27%.
Meta's core advertising business has benefited greatly through improved ad targeting and content recommendation algorithms as well as a secular increase in digital advertising spending.
Meta's investments in Reality Labs and generative AI stand to lose the firm billions of dollars annually, taking some of the shine off its overall business.
|
Metric
|
META
|
GOOGL
|
SNAP
|
|---|---|---|---|
Price/Earnings (Normalized) | 23.65 | 29.96 | 13.78 |
Price/Book Value | 5.86 | 5.29 | 4.96 |
Price/Sales | 6.63 | 7.41 | 1.51 |
Price/Cash Flow | 12.14 | 17.00 | 10.68 |
|
Metric
|
META
|
GOOGL
|
SNAP
|
|---|---|---|---|
Quick Ratio | 1.67 | 2.47 | 2.72 |
Current Ratio | 1.90 | 2.72 | 2.94 |
Interest Coverage | 28.25 | 131.63 | −1.95 |
|
Metric
|
META
|
GOOGL
|
SNAP
|
|---|---|---|---|
Return on Assets (Normalized) | 25.49% | 22.33% | 9.16% |
Return on Equity (Normalized) | 42.75% | 32.12% | 32.55% |
Return on Invested Capital (Normalized) | 30.92% | 27.38% | 11.41% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Alphabet Inc Class A
GOOGL
| LOCK|$!>$hN$ | LOCK|K$ | $3T | |||
| Alphabet Inc Class C
GOOG
| LOCK|$VHxxV!c | LOCK|<@ | $3T | |||
| Tencent Holdings Ltd ADR
TCEHY
| LOCK|?^%W%f^ | LOCK|@xm | $433B | |||
| Spotify Technology SA
SPOT
| LOCK|#fSq&^!v | LOCK|#t!c | $115B | |||
| Nebius Group NV Shs Class-A-
NBIS
| LOCK|J$hx?F^ | LOCK|s@q | $47B | |||
| Baidu Inc ADR
BIDU
| LOCK|vWl@%G | LOCK|y& | $26B | |||
| Reddit Inc Class A Shares
RDDT
| LOCK|sFl!RFF | LOCK|FcN^^ | $25B | |||
| Tencent Music Entertainment Group ADR
TME
| LOCK|M$f&sz | LOCK|#qB^T | $13B | |||
| Pinterest Inc Class A
PINS
| LOCK|@n%^$!< | LOCK|k@hP | $11B |
United States