â„–12414[Quote]
So, watching CNBC Overtime yesterday, I noticed they were hardcore hyping the fact that Cuckerberg is planning to inject more capital into AI investments.
They were very enthusiastic about the fact that Meta outperformed Wallstreet's expectations, surprise surprise.
First thing I noticed, however, when skimming through their earnings presentation was that, even though diluted EPS were better than expectations, they were still down QoQ.
>Q1 2025: $6,43 / share
>Q4 2024: $8,02 / share
>casual 19,8% decrease QoQ
>At a closing price of $549
>that'd put their P/E at 85,3 from 68,5
>and the stock went +6% after hours
>what the fuck?
Is that valuation justified? "Muh outperformance"?
>fuck no
>ad revenue across the board decreased 13% QoQ
>revenue in general decreased 14% QoQ
But then comes the really fun raisin:
>expenses as a % of revenue INCREASED FROM 52% TO 59%
>net income increased 35% YoY
>net cash provided by operating activities increased 25% YoY
>NET CASH USED IN INVESTING ACTIVITIES (including purchases of property and equipment, e.g. a lot of AI related investment) INCREASED 129% YoY
You might think, oh wow, that's a lot, but fortunately, revenue generated from AI and ad acticities will balance this out ez pz, and some way you're right.
>Cash used in investing activities is $20bln, and revenue generated YoY is $42bln.
>Net income, however, is only $16,6bln
They don't even label AI as its standalone stream of revenue. It's simply shoved under 'Other'
>'Other' generated $510mln in revenue since Q1 2024, cash invested in purchases of property and equipment cost 12 BILLION DOLLARS.
As a percentage for every dollar of revenue generated by 'Other' activities, $23 are invested into the sinkhole.
>4,25% generated from 100% invested
Absolute fuckfest, don't invest in this raisin.
Reposting to a more educated /biz/
â„–12451[Quote]
>>12414 (OP)turns out if banks are fucking everyone sideways and not lending anyone money to start businesses, then no one buys advertising…