Why Shares of Meta Are Sinking After Earnings Report

You take a look at what the market thinks and it is not good. Medicare is currently off in more than 12%. After hours, what do you think is the great concern at this time? Is that income perspective or that great increase, of course, Capex and expenses? Yes, I mean, listen, I think that first, the real quarterly quite good in my opinion. I mean, you look at the upper line that grows between 25 and 27%, that is a good number for them. They will probably be when you look, you know, the rest of the type of competitors will probably overcome everyone else on the side of the digital ads of things.

But when you look at the guide here for the second quarter on the side of the income of things, definitely a small disappointment. But we believe that the biggest disappointment is really in Capex numbers. When I look at it and why they have been able to see the impulse that you have been able to see here in the last 5 to 6 rooms, a great reason why you have really been, you know, maintain those very tight quality control controls since they have seen an acceleration in the upper line. Everyone knew that growth was going to slow down as we advanced in the second quarter and, more importantly, the second half of the year in some of those most difficult comps.

But the expectation that I think was that they were going to maintain those costs under control. And the fact that we are not really seeing that I think it is definitely seeing many investors until it seems what you are saying is that the year of efficiency is over and that apparently merchants do not like. Yes, I mean, I would go as far as that. I mean, it is definitely a disappointment, I think, for merchants out there. And, you know, it is definitely an end of an era in terms of type of those lost controls that we have seen of the company.

And the question now is, what will the company say in the call in terms of expectations not only in the second half of the year, but rather in 2025, what kind of comment do they throw there? Do you relieve some of the concerns we are seeing right now or not? I am curious. I mean, I know that there is a great focus on its costs and, obviously, the amount of capital and expense they are going to do in AI. But only speak a little about its traditional business, which is still only this challenging cash cow, the advertising business we are going we are already in an electoral year, which generally tends to benefit advertisers.

There has been a lot of discussion about how a Tock tick, prohibition or divestment could help some of the other social media platforms, such as meters platforms, etc., here. Do you see that growth continues in that advertising space without restrictions? I mean, we do it, I mean, we really think that if something is, you know, it helped the growth trajectory for the digital ads space. You are right. I mean, a goal is in many ways, unlike others, the type of names of Mag Seven, you know, are more a single trick and that are really tied to that digital ads space at this time.

Our opinion is that it can grow almost double until 2025, and I will definitely help them in that regard. We have seen sharing the Metis side here in recent memory because they have been able to act and move so fast with some of their AI initiatives, creating some of those greats, you know, admiration for some of those advertisers that will continue to gain impulse, we believe, in the next quarters. And that should help your general business and the kind of growth career for the digital advertising space. But yes, I mean, in every way, I mean, again, communications become much more difficult as you reach the second half of this year.

Yes, of course, as you enter 2025 and overcome this type of numbers you are seeing at this time. However, I am curious, in the long term on the basis of users for the subject. I guess there has been a lot of hay, the age of some of its users now, particularly on Facebook, but even Instagram. And I could count on my family's children, none of them mentioned better properties. That's, you know, Snap and Discord and, you know, some of his technological talks and things like this. Do they have a generation problem that will have to face at some point?

You know, I think there is a problem to some extent from that side of things. I mean, I think they have been able to see some improvements with the reels in the year in the last quarters. And, you know, there is more and more, I believe, individuals out there, you know, go to that Instagram platform on the genuine side of things. But I think you make a valid point. I think that when you look at some of the most population type of the next generation, it is all kinds of touck tick, it is a click. But, you know, I think, you know, when we think, you know, it matters here, they are starting to find the way here with reels.

I think they will be other types of tools that show that they could help improve that ecosystem. And then we also have to see what happens with Tatch Tock here during the next year more or less that could help your business improve commitment levels and what you have. So. Believe. Yes, I think you make a valid point. But yes, said that, I think there is still no good place for.