Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

<ul>
<li>Good 3Q25: revenue 4% above Consensus, Operating Income 7% above. But a huge US$18bn tax reversal leads to a big GAAP miss. A 10% NON-GAAP beat.</li>
<li>2025 Capex revised up to high end of range, from $66-72 bn to $70-72 billion. 2026 Capex dollar growth will be notably larger than 2025, that means over 100bn.</li>
<li>Stock down -9% after hours, an over-reaction to a one-off non-cash tax write off. Valuations: slightly high as 2026 growth is forecast to be low due to OP margin decline.</li>
</ul>


Good 3Q25: revenue 4% above Consensus, Operating Income 7% above. But a huge US$18bn tax reversal leads to a big GAAP miss. A 10% NON-GAAP beat.
2025 Capex revised up to high end of range, from $66-72 bn to $70-72 billion. 2026 Capex dollar growth will be notably larger than 2025, that means over 100bn.
Stock down -9% after hours, an over-reaction to a one-off non-cash tax write off. Valuations: slightly high as 2026 growth is forecast to be low due to OP margin decline.


Meta: A Good 3Q Spoiled by a Tax Problem. Capex Boom Continues in 2026.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Meta Platforms is staring down a new wave of disruption just as it ramps up its ambitions in AI and immersive content.</li><li>On October 3rd, OpenAI’s newly launched AI-video app, Sora, surged to the No. 1 spot on Apple’s App Store, less than a week after release.</li><li>While Meta was showcasing the scalability of its AI infrastructure, with over 3.4 billion daily app users and expanding monetization tools, Sora quietly detonated a cultural moment.</li></ul>

Meta Platforms is staring down a new wave of disruption just as it ramps up its ambitions in AI and immersive content.On October 3rd, OpenAI’s newly launched AI-video app, Sora, surged to the No. 1 spot on Apple’s App Store, less than a week after release.While Meta was showcasing the scalability of its AI infrastructure, with over 3.4 billion daily app users and expanding monetization tools, Sora quietly detonated a cultural moment.

Meta Blindsided: OpenAI’s Sora Dethrones Instagram Overnight!

<ul><li>Meta Platforms has taken another bold step in its augmented reality (AR) journey with the announcement of its $800 Ray-Ban smart glasses featuring a built-in display, gesture-based control via a Neural Band wristband, and AI integration.</li><li>Unveiled at its September 2025 Connect conference, these glasses aim to transition the market from novelty wearables to daily-use smart devices.</li><li>With over 2 million units of the prior Ray-Ban model sold since 2023, Meta is pushing hard to capitalize on its dominant 60% market share in smart glasses.</li></ul>

Meta Platforms has taken another bold step in its augmented reality (AR) journey with the announcement of its $800 Ray-Ban smart glasses featuring a built-in display, gesture-based control via a Neural Band wristband, and AI integration.Unveiled at its September 2025 Connect conference, these glasses aim to transition the market from novelty wearables to daily-use smart devices.With over 2 million units of the prior Ray-Ban model sold since 2023, Meta is pushing hard to capitalize on its dominant 60% market share in smart glasses.

Meta’s $800 Smart Glasses Are Here—& They’re Watching Everything!

<ul><li>In a high-stakes move to stay competitive in the rapidly evolving AI landscape, Meta Platforms is radically restructuring its artificial intelligence organization.</li><li>The company is dismantling its existing Meta Superintelligence Labs (MSL) and splitting it into four specialized groups—focused on research, product, infrastructure, and superintelligence.</li><li>This development follows months of internal tension and strategic uncertainty, culminating in a significant leadership pivot with the appointment of Scale AI’s founder Alexandr Wang as Meta’s new Chief AI Officer.</li></ul>

In a high-stakes move to stay competitive in the rapidly evolving AI landscape, Meta Platforms is radically restructuring its artificial intelligence organization.The company is dismantling its existing Meta Superintelligence Labs (MSL) and splitting it into four specialized groups—focused on research, product, infrastructure, and superintelligence.This development follows months of internal tension and strategic uncertainty, culminating in a significant leadership pivot with the appointment of Scale AI’s founder Alexandr Wang as Meta’s new Chief AI Officer.

Meta Is Ripping Apart Its AI Division—& Betting Big To Catch OpenAI

<ul><li>Meta Platforms delivered a standout performance in the second quarter of 2025, with shares surging 12% to $779.70, just shy of its all-time high.</li><li>The company significantly exceeded Wall Street expectations, reporting earnings per share of $7.14 versus the expected $5.88 and revenue of $47.5 billion, up 22% year-over-year.</li><li>This strong financial showing was driven by growth in daily users, ad impressions, and price-per-ad across Meta’s platforms.</li></ul>

Meta Platforms delivered a standout performance in the second quarter of 2025, with shares surging 12% to $779.70, just shy of its all-time high.The company significantly exceeded Wall Street expectations, reporting earnings per share of $7.14 versus the expected $5.88 and revenue of $47.5 billion, up 22% year-over-year.This strong financial showing was driven by growth in daily users, ad impressions, and price-per-ad across Meta’s platforms.

Meta's Record Revenues, Soaring Stock & Utopian AI: Will Zuckerberg’s $31 Billion AI Bet Pay Off?

United States

Meta Platforms Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. meta Platform is also involved in advertisements, augmented and virtual reality.

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Meta (META US)

Meta: A Good 3Q Spoiled by a Tax Problem. Capex Boom Continues in 2026.

3Q25 saw strong financial performance for the company, with revenue and operating income beating expectations. However, a large tax reversal led...

Nicolas Baratte

Meta Blindsided: OpenAI’s Sora Dethrones Instagram Overnight!

Meta Platforms is staring down a new wave of disruption just as it ramps up its ambitions in AI and immersive content. On October 3rd, OpenAI’s...

Baptista Research

Meta’s $800 Smart Glasses Are Here—& They’re Watching Everything!

Meta Platforms has taken another bold step in its augmented reality (AR) journey with the announcement of its $800 Ray-Ban smart glasses featuring...

Baptista Research

Meta Is Ripping Apart Its AI Division—& Betting Big To Catch OpenAI

In a high-stakes move to stay competitive in the rapidly evolving AI landscape, Meta Platforms is radically restructuring its artificial...

Baptista Research

Meta's Record Revenues, Soaring Stock & Utopian AI: Will Zuckerberg’s $31 Billion AI Bet Pay Off?

Meta Platforms delivered a standout performance in the second quarter of 2025, with shares surging 12% to $779.70, just shy of its all-time...

Baptista Research

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Meta: A Good 3Q Spoiled by a Tax Problem. Capex Boom Continues in 2026.

​3Q25 saw strong financial performance for the company, with revenue and operating income beating expectations. However, a large tax reversal led...

Nicolas Baratte

Meta Blindsided: OpenAI’s Sora Dethrones Instagram Overnight!

Meta Platforms is staring down a new wave of disruption just as it ramps up its ambitions in AI and immersive content. On October 3rd, OpenAI’s...

Baptista Research

Meta’s $800 Smart Glasses Are Here—& They’re Watching Everything!

Meta Platforms has taken another bold step in its augmented reality (AR) journey with the announcement of its $800 Ray-Ban smart glasses featuring...

Baptista Research

Meta Is Ripping Apart Its AI Division—& Betting Big To Catch OpenAI

In a high-stakes move to stay competitive in the rapidly evolving AI landscape, Meta Platforms is radically restructuring its artificial...

Baptista Research

Meta's Record Revenues, Soaring Stock & Utopian AI: Will Zuckerberg’s $31 Billion AI Bet Pay Off?

Meta Platforms delivered a standout performance in the second quarter of 2025, with shares surging 12% to $779.70, just shy of its all-time...

Baptista Research

3Q25 saw strong financial performance for the company, with revenue and operating income beating expectations. However, a large tax reversal led...