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.

Equity Bottom-Up

Meta Platforms (Facebook) / Equity Bottom-Up

<ul><li>Meta Platforms is making headlines once again with its latest overhaul of content moderation policies, signaling a significant shift in how the social media giant manages user interactions and information dissemination.</li><li>In a bold move, Meta announced the elimination of its third-party fact-checking program, aiming to "restore free expression" by adopting a crowdsourced "Community Notes" model akin to Elon Musk’s X platform.</li><li>CEO Mark Zuckerberg emphasized that the previous system was "too politically biased" and eroded trust, particularly in the United States.</li></ul>

Meta Platforms is making headlines once again with its latest overhaul of content moderation policies, signaling a significant shift in how the social media giant manages user interactions and information dissemination.In a bold move, Meta announced the elimination of its third-party fact-checking program, aiming to "restore free expression" by adopting a crowdsourced "Community Notes" model akin to Elon Musk’s X platform.CEO Mark Zuckerberg emphasized that the previous system was "too politically biased" and eroded trust, particularly in the United States.

Meta's New Moderation Strategy: A Trump-Friendly Game Changer?

<ul><li>Meta Platforms, Inc. recently presented its third quarter 2024 results with a range of operational and strategic updates which provide a mixed view of the company’s trajectory.</li><li>In terms of financial performance, Meta reported a robust quarter with revenues standing at $40.6 billion, reflecting a year-over-year increase of 19%.</li><li>This growth is primarily attributed to a continuous rise in the user base across its family of apps, supplemented by increasing adoption of advertisement technologies driven by AI enhancements.</li></ul>

Meta Platforms, Inc. recently presented its third quarter 2024 results with a range of operational and strategic updates which provide a mixed view of the company’s trajectory.In terms of financial performance, Meta reported a robust quarter with revenues standing at $40.6 billion, reflecting a year-over-year increase of 19%.This growth is primarily attributed to a continuous rise in the user base across its family of apps, supplemented by increasing adoption of advertisement technologies driven by AI enhancements.

Meta's AI-Powered Engagement Boost: What You’re Not Seeing Behind the Scenes!

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 reported 3Q24 results: total revenue grew by 19% YoY to US$40.6bn, in line with Bloomberg consensus estimate; net income was up by 35% YoY to US$15.7bn, 15% ahead of the consensus estimate thanks to effective control of S&amp;M and G&amp;A expenses.</li><li>For 4Q24E, management guides total revenue to grow by 12-20% YoY to US$45-48bn, the midpoint of which is in line with consensus (US$46.1bn).</li><li>Looking ahead, management will continue to step up investment in strategic priorities such as GenAI, infrastructure, and monetization, and expects significant capex growth and acceleration in infra-related expense growth in 2025E. </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 reported 3Q24 results: total revenue grew by 19% YoY to US$40.6bn, in line with Bloomberg consensus estimate; net income was up by 35% YoY to US$15.7bn, 15% ahead of the consensus estimate thanks to effective control of S&amp;M and G&amp;A expenses.For 4Q24E, management guides total revenue to grow by 12-20% YoY to US$45-48bn, the midpoint of which is in line with consensus (US$46.1bn).Looking ahead, management will continue to step up investment in strategic priorities such as GenAI, infrastructure, and monetization, and expects significant capex growth and acceleration in infra-related expense growth in 2025E. 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) - AI Development on Track; Stepped-Up Investment to Drag Margin Expansion Pace

Mostly Borrowed Ideas Deep Dives, MBI Deep Dives

MBI Deep Dives

Mostly Borrowed Ideas Deep Dives

MBI is the abbreviation for “Mostly Borrowed Ideas”. Why “Mostly Borrowed Ideas?” As a generalist, I do not have a background in any particular sector. I enjoy navigating across industries, businesses, and countries to learn, understand, and connect the dots. In any case, most ideas and innovations are incremental in nature. Very few of us are smart enough to come up with truly original or groundbreaking ideas. I am Abdullah Al-Rezwan. I was born and brought up in Bangladesh. I went to University of Dhaka for my undergrad and majored in Finance. After working three and half years in Equity Research (Sell-side) covering Financial Sector in Bangladesh, I left Bangladesh to pursue my MBA in the US. I graduated within top 10% of the class from Cornell University's two-year MBA program and worked on the buy-side following my graduation. During my time at Cornell, I won two stock pitch competitions and also became finalists in four other competitions. I thoroughly enjoyed my stint as a generalist in the US large cap team at Madison Investments and covered a wide range of companies from UnitedHealth to Amazon and Boeing before US immigration reality paused my career in investment management. As my work authorization expired, I moved to Canada in January, 2021. Then in early 2022, I was able to return to the US.

<ul><li>Daily Active People (DAP) across its Family of Apps (FOA) decelerated to 20 mn QoQ in 3Q’24.</li><li>Even though easy comp ended in 1Q’24 and 3Q’24 faced a fairly difficult comp, Meta posted quite strong YoY growth rates across regions in 3Q’24.</li><li>Meta’s Family of Apps (FOA) ads revenue growth is comfortably ahead of both Google Search and YouTube ads in each of the last 1-yr, 2-yr, and 3-yr timeframe.</li></ul>

Daily Active People (DAP) across its Family of Apps (FOA) decelerated to 20 mn QoQ in 3Q’24.Even though easy comp ended in 1Q’24 and 3Q’24 faced a fairly difficult comp, Meta posted quite strong YoY growth rates across regions in 3Q’24.Meta’s Family of Apps (FOA) ads revenue growth is comfortably ahead of both Google Search and YouTube ads in each of the last 1-yr, 2-yr, and 3-yr timeframe.

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>TikTok's business model advantage: short form video creates greater signal for algorithmic addiction is forcing rivals to react (where possible).</li>
<li>META is best positioned to copy TikTok, and is trading at a valuation approximating cable networks during cord cutting.</li>
<li>Netflix is worst positioned... as YouTube, Instagram, and Snap incorporate TikTok's short form video, more attention will be drawn away from the streaming services. Tough spot to be in.</li>
</ul>


TikTok's business model advantage: short form video creates greater signal for algorithmic addiction is forcing rivals to react (where possible).
META is best positioned to copy TikTok, and is trading at a valuation approximating cable networks during cord cutting.
Netflix is worst positioned... as YouTube, Instagram, and Snap incorporate TikTok's short form video, more attention will be drawn away from the streaming services. Tough spot to be in.


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 Platforms (Facebook) (META US)

Meta's New Moderation Strategy: A Trump-Friendly Game Changer?

Meta Platforms is making headlines once again with its latest overhaul of content moderation policies, signaling a significant shift in how the...

Baptista Research

Meta's AI-Powered Engagement Boost: What You’re Not Seeing Behind the Scenes!

Meta Platforms, Inc. recently presented its third quarter 2024 results with a range of operational and strategic updates which provide a mixed...

Baptista Research

Meta (META US) - AI Development on Track; Stepped-Up Investment to Drag Margin Expansion Pace

Meta reported 3Q24 results: total revenue grew by 19% YoY to US$40.6bn, in line with Bloomberg consensus estimate; net income was up by 35% YoY to...

CMB International

Meta 3Q'24 Update

Even though easy comp ended in 1Q’24 and 3Q’24 faced a fairly difficult comp, Meta posted quite strong YoY growth rates across regions in 3Q’24.

MBI Deep Dives

TMT Pre-2Q Earnings: The TikTok Impact

TikTok is wreaking havoc on the advertising and streaming ecosystems by stealing attention. META is best positioned to respond, NFLX is least well...

Aaron Gabin

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