Meta Platforms: The Biggest Holding In EasyETFs AI World AMETF!
Meta Platforms is one of the largest holdings in the newly listed EasyETFs AI World Actively Managed ETF, managed by EAM (EasyAssetManagement). Shaun Krom, CIO (Chief Investment Officer) of EAM, believes that Meta could be positioned for future AI leadership based on the latest results.
As the portfolio manager of the EasyETFs AI World Actively Managed ETF, the goal is to track the most promising companies in the AI landscape. Meta Platforms (META) stands out with its Q3 earnings report. Meta has reaffirmed its position as a key player in AI and digital advertising, driven by robust revenue growth, a thriving ad ecosystem, and forward-looking investments in GenAI and Reality Labs.
Meta's Q3 Earnings Report
Last week, Meta highlighted the surge in AI spending through its third-quarter earnings. The social media and tech giant’s capital expenditure rose 36% to $9.2 billion, with expectations of further increases next year. Additionally, Meta's AI head, Ahmad Al-Dahle, shared that Meta trained its Llama 4 model using over 100,000 Nvidia H100 chips.
Key Points Highlighting Meta’s Market Advantage
Meta’s Q3 results surpassed revenue estimates, showcasing solid growth momentum. The core Family of Apps (FOA) revenue outperformed expectations, emphasizing Meta’s strong ad ecosystem. Although Reality Labs faced challenges, Meta's advertising engine demonstrated growth with a notable increase in price per ad impression and total ad impressions. Key geographic regions like the U.S. and Europe showed significant ad revenue growth.
Profitability and Investments
Meta exceeded EBIT estimates and posted strong profitability metrics, despite rising operating expenses. The company’s commitment to AI infrastructure is reflected in its rising cost of revenue. With a robust balance sheet and revised guidance, Meta is well-positioned for future investments and growth opportunities.
AI & Ad Monetization Strategy
Meta’s AI strategy focuses on improving engagement and monetization through core AI and innovative tools. The company’s AI-powered tools have shown early success in driving advertiser performance and retention. GenAI and Reality Labs initiatives aim to create transformative digital experiences and long-term value for Meta.
Core AI and Reality Labs: Future Outlook
Meta’s investments in GenAI and Reality Labs demonstrate its ambition to build the next computing platform. Initiatives like the Llama model and open-source GenAI platform invite global developers to contribute to Meta’s ecosystem, fostering innovation and competitiveness.
Conclusion: A Bullish Take on Meta
Meta remains a core holding in the EasyETFs AI World Actively Managed ETF, offering potential growth in AI, ad monetization, and digital experiences. With a clear vision and ongoing investments in the future, Meta continues to lead in the AI landscape.
