META continues its streak of impressive earnings, beating estimates with EPS of $7.14 and revenue of $47.52 billion. The stock is up ~8.5%, showcasing consistent growth and investor confidence. Ad business remains robust, with ad impressions up 11% and average ad price up 9% year-over-year. META’s AI pivot is driving success, with shares potentially heading towards $900-$1,000.

Despite strong performance, META faces potential headwinds due to increased expense growth and cash loss in the ‘Reality Labs’ segment. Management anticipates a significant CAPEX increase next year, impacting margins. However, investors should focus on the core ad business, which continues to drive growth.

META’s aggressive AI investments and CAPEX spending are well-received by investors. The company’s financial performance remains exceptional, driven by its strong ad business and strategic investments in AI. Moving forward, investors will closely monitor earnings and the impact of increased spending on future growth.

Read more at Nasdaq: Meta’s Earnings Streak Continues as Ad Business Performs