Stocks and Trading Thread - Channeling your inner Mono

[crazy canuck]

Thanks to google's AI for answering my question. 

Based on my experience theres a 50/50 chance that answer is incorrect

As high as a 50% accuracy rate? That has not been my experience.

[Admiral Yi]

Warren Boofay took a big position in Alphabet in the third quarter.

[Admiral Yi]

Netflix just split 10-1 so now I can sell covered calls.

[Admiral Yi]

This guy says Meta announced $60 billion in recurring AI revenue in 3Q.

[Jacob]

This guy says Meta announced $60 billion in recurring AI revenue in 3Q.

I'm not able to watch the video right now, but two questions...

One) Who is this guy?

Two) Does he say what part of their AI business is generating that revenue? Like...if it's reclassified advertising revenue because they're now using AI, that's one thing; if it's new revenue with people paying for AI services that's another thing altogether.

$60 billion/ quarter seems non-trivial.

[Josquius]

Not just advertising, as I said earlier 'data' was a huge thing 5-10 years ago and a lot of that has been folded into AI.

[crazy canuck]

This guy says Meta announced $60 billion in recurring AI revenue in 3Q.

I'm not able to watch the video right now, but two questions...

One) Who is this guy?

Two) Does he say what part of their AI business is generating that revenue? Like...if it's reclassified advertising revenue because they're now using AI, that's one thing; if it's new revenue with people paying for AI services that's another thing altogether.

$60 billion/ quarter seems non-trivial.

The guy didn't say what Yi claimed.  He said Meta are "talking about" getting 60 billion in revenue from their AI investments, as a justification for those expenditures.  Not that they are now realizing that revenue. 

For reference the entire revenue of Meta for the third quarter was under 60 billion ($51.24 billion to be precise).  But I can excuse Yi from not understanding the difference, the guy is a stock guy hyping the stock and he blurred the expected revenue projections with what is actually happening.

But even so, he is talking about that revenue being generated in advertising. And somehow he equated that as AI generating ROI.  Nothing more than people talking up the stock.

[Admiral Yi]

I'm not able to watch the video right now, but two questions...

One) Who is this guy?

Two) Does he say what part of their AI business is generating that revenue? Like...if it's reclassified advertising revenue because they're now using AI, that's one thing; if it's new revenue with people paying for AI services that's another thing altogether.

$60 billion/ quarter seems non-trivial.

Barton Crockett of Rosenblatt Securities.

I'll quote the relevant portion and you make up your own mind.

The argument is they [Meta] have already gotten the return.  They said on their third quarter call sixty billion dollars of annualized recurring revenue from their end-to-end AI performance tools.  That revenue is largely margin, and that compares to sixty billion dollars of higher capX perhaps in 2026 versus 2024.

[The Minsky Moment]

The Meta earnings call transcript is  available online, we don't have to guess:

https://s21.q4cdn.com/399680738/files/doc_financials/2025/q3/META-Q3-2025-Earnings-Call-Transcript.pdf

Relevant portion was spoken by CFO Susan Li on page 6:

Within our ads products, we're seeing continued momentum with Advantage+. In Q3, we  completed the roll out of our streamlined campaign creation flow for Advantage+ Lead campaigns, so now advertisers running sales, app or lead campaigns have end-to-end automation turned on from the beginning, allowing our systems to look across our platform to optimize performance by automatically choosing criteria like who to show the ads to and where to show them. The annual run-rate of revenue running through our end-to-end automated solutions has now reached $60 billion following the implementation of the new streamlined creation flow as we continue to see more advertisers leverage the performance benefits of our solutions. 

1. She is talking annual, not quaterly revenue.
2. the 60 billion refers to ALL  revenue "running through our end-to-end automated solutions"  I.e. she is just counting all ad revenue that Meta/FB generated where the advertiser used one or more of their optimization tools.

There is no claim that the optimization tools drove incremental revenue (i.e. people might have been buying anyways).  These are existing advertising clients that are making use of some of the tools FB made available.