Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>Tough Start to the Week -- Negative News for Nvidia and Apple Supply Chains</li>
<li>Key Events: Asustek &amp; Novatek Results; Mediatek &amp; TSMC July Sales Data</li>
<li>UMC Signals Non-AI Industry Inventory Correction Through 2024E; Why Intel Is Increasingly Important </li>
</ul>


Tough Start to the Week -- Negative News for Nvidia and Apple Supply Chains
Key Events: Asustek &amp; Novatek Results; Mediatek &amp; TSMC July Sales Data
UMC Signals Non-AI Industry Inventory Correction Through 2024E; Why Intel Is Increasingly Important 


Taiwan Tech Weekly: Tough Start for Nvidia and Apple Supply Chains; Asustek, Novatek Results Ahead

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Meta announced 2Q24 results: total revenue increased by 22% YoY to US$39.1bn, 2% ahead of Bloomberg consensus estimate; net income grew by 73% YoY to US$13.5bn, beating consensus estimate by 10%, primarily due to effective control in headcount-related expenses.</li><li>For 3Q24E, management expects total revenue to grow by 13-20% YoY to US$38.5-41.0bn, which is largely in line with consensus estimate (US$39.2bn) and remains resilient despite the high-base effect.</li><li>Despite stepped-up Capex investment, management maintains its FY24 full-year total expenses guidance unchanged at US$96-99bn, which should ease investor concern on its margin expansion trajectory in FY24. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Meta announced 2Q24 results: total revenue increased by 22% YoY to US$39.1bn, 2% ahead of Bloomberg consensus estimate; net income grew by 73% YoY to US$13.5bn, beating consensus estimate by 10%, primarily due to effective control in headcount-related expenses.For 3Q24E, management expects total revenue to grow by 13-20% YoY to US$38.5-41.0bn, which is largely in line with consensus estimate (US$39.2bn) and remains resilient despite the high-base effect.Despite stepped-up Capex investment, management maintains its FY24 full-year total expenses guidance unchanged at US$96-99bn, which should ease investor concern on its margin expansion trajectory in FY24. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Meta (META US) - 2Q24 Earnings Beat; Intact FY24 Earnings Growth Outlook Despite AI Investment

AI and Global Deep Tech, Mint Finance

Uttkarsh Kohli

AI and Global Deep Tech

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

<ul>
<li>Meta's Q2 revenue of $39.1B surpassed expectations, up 22% YoY. EPS jumped 73% YoY to $5.16, beating estimates.</li>
<li>Ad revenue within the Family of Apps rose 22% YoY, driven by online commerce and strong performance in Europe and the Rest of the World.</li>
<li>Q3 revenue forecasted between $38.5B and $41B. Meta’s AI investments are set to enhance ad delivery and support long-term growth, despite increasing CapEx.</li>
</ul>


Meta's Q2 revenue of $39.1B surpassed expectations, up 22% YoY. EPS jumped 73% YoY to $5.16, beating estimates.
Ad revenue within the Family of Apps rose 22% YoY, driven by online commerce and strong performance in Europe and the Rest of the World.
Q3 revenue forecasted between $38.5B and $41B. Meta’s AI investments are set to enhance ad delivery and support long-term growth, despite increasing CapEx.


Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments

<ul>
<li>Meta is expected to report a 58% YoY increase in EPS to $4.71, with revenue climbing 20% YoY to $38.29B, driven by robust ad performance.</li>
<li>Meta plans a 20% cut in Reality Labs' budget through 2026, aiming to save $3B while shifting focus to upcoming hardware production.</li>
<li>In Q1, increased daily active users and a 6% rise in average ad prices have boosted Meta’s ad revenue, despite heightened competition and regulatory pressures. Likely to continue.</li>
</ul>


Meta is expected to report a 58% YoY increase in EPS to $4.71, with revenue climbing 20% YoY to $38.29B, driven by robust ad performance.
Meta plans a 20% cut in Reality Labs' budget through 2026, aiming to save $3B while shifting focus to upcoming hardware production.
In Q1, increased daily active users and a 6% rise in average ad prices have boosted Meta’s ad revenue, despite heightened competition and regulatory pressures. Likely to continue.


[Q2 Earnings Preview] Meta's Ad Revenues Expected to Surge, But Rising Spend Remains a Concern

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>PDD US/META US: Temu continues to be the most downloaded app in the US (+)</li>
<li>PDD US : PDD launching new ad-tool to replace previous tools (+)</li>
<li>700 HK: Tencent's Third-Person Shooter Game &lt;Synced&gt; Announces Termination of Service on September 9th (-)</li>
</ul>


PDD US/META US: Temu continues to be the most downloaded app in the US (+)
PDD US : PDD launching new ad-tool to replace previous tools (+)
700 HK: Tencent's Third-Person Shooter Game &lt;Synced&gt; Announces Termination of Service on September 9th (-)


[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

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)

Taiwan Tech Weekly: Tough Start for Nvidia and Apple Supply Chains; Asustek, Novatek Results Ahead

Nvidia and Apple negative news sets the Taiwan Tech universe off to a tough start of the week. This week look for Asustek, Novatek, Himax results...

Vincent Fernando, CFA

Meta (META US) - 2Q24 Earnings Beat; Intact FY24 Earnings Growth Outlook Despite AI Investment

Overall, we raise FY24-26E total revenue forecast by 1-2% in view of the solid ad demand across verticals. We lift our TP by 5% to US$565.0 on 27x...

CMB International

Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments

Meta's Q2 revenue hits $39.1B (+22% YoY) with earnings at $5.16/share (+73% YoY). Shares climbed 7% after exceeding forecasts and offering a robust...

Mint Finance

[Q2 Earnings Preview] Meta's Ad Revenues Expected to Surge, But Rising Spend Remains a Concern

Meta to report Q2 earnings on 31/July, with expected EPS of $4.71 (+58% YoY) and revenue of $38.29B(+20% YoY). Investors look forward to strong ad...

Mint Finance

[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.

Blue Lotus Research Institute

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Taiwan Tech Weekly: Tough Start for Nvidia and Apple Supply Chains; Asustek, Novatek Results Ahead

Nvidia and Apple negative news sets the Taiwan Tech universe off to a tough start of the week. This week look for Asustek, Novatek, Himax results...

Vincent Fernando, CFA

Meta (META US) - 2Q24 Earnings Beat; Intact FY24 Earnings Growth Outlook Despite AI Investment

Overall, we raise FY24-26E total revenue forecast by 1-2% in view of the solid ad demand across verticals. We lift our TP by 5% to US$565.0 on 27x...

CMB International

Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments

Meta's Q2 revenue hits $39.1B (+22% YoY) with earnings at $5.16/share (+73% YoY). Shares climbed 7% after exceeding forecasts and offering a robust...

Mint Finance

[Q2 Earnings Preview] Meta's Ad Revenues Expected to Surge, But Rising Spend Remains a Concern

Meta to report Q2 earnings on 31/July, with expected EPS of $4.71 (+58% YoY) and revenue of $38.29B(+20% YoY). Investors look forward to strong ad...

Mint Finance

[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

​Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.

Blue Lotus Research Institute

Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.