Meta Platforms

Meta Platforms is a NASDAQ-listed technology group that owns and operates Facebook, Instagram, WhatsApp, Messenger and Threads (“Family of Apps”), monetising largely through digital advertising, alongside Reality Labs (AR/VR hardware and software, including Quest).

“During the quarter, the stock came under pressure due to very large, guided capital expenditure (CAPEX) numbers, which the market has begun to view with scepticism regarding the suitability of returns. However, Meta reported accelerating revenue growth and provided numerous examples of how AI is vastly improving its advertising systems and user engagement. Spend appears supported by revenue growth, and while it pressures near-term margins (as CAPEX is depreciated), there is more discipline regarding Reality Labs spending. Excluding Reality Labs losses, Meta trades on a 17x 2027 PE multiple.”