Reddit's human conversations are gaining value as AI content proliferates, supporting advertiser spending and AI data licensing. Revenue grew 61% last quarter, with margins in the 40s, but US user growth slowed to 6%. Advertisers are paying more each quarter and AI labs pay for Reddit's data. Overweight; $200 target. x.com 

Reddit's logged-in users drive monetization, so weak search-driven traffic matters less than ARPU. Reddit says app and logged-in users grew sequentially in Q3 and generate over 80% of monetization, though lost search referrals also hurt them. ARPU rose 53% despite barely higher users; a low ad base could allow it to double even with muted growth. Restricting Google scraping might force a licensing deal that helps its Anthropic case and OpenAI renewal, though no deal is certain. x.com  x.com  x.com  … Show more

Meta's AI spending is weakening conversion of strong ad growth into profit and cash, making its valuation one to approach patiently, not chase. Revenue rose 26%, but operating profit excluding a legal settlement rose only about 11%; $34.9B in quarterly capex exceeded $32.8B in operating cash flow. AI has helped ads, though other factors contributed. One negative free-cash-flow quarter is not an operating failure, but depreciation could squeeze margins unless new revenue covers costs. x.com 

Meta's core advertising business is significantly outgrowing its biggest competitors even before factoring in the newer businesses it is building. Q3 ad revenue rose 26% year over year, versus 10.6% at Alphabet and 10.9% at Amazon. Back at 19x forward earnings, Meta is the most undervalued Magnificent Seven stock. x.com  x.com 

Meta's AI infrastructure financing raises the risk that a long wait for revenue and profit will keep its shares volatile. It disclosed plans to raise up to $95 billion. @amitisinvesting warns that further dilution could keep the stock stuck even if the buildout eventually pays off. Meta's selloff is still a massive buying opportunity. x.com  x.com  x.com 

Meta's heavy spending raises questions about how it will earn a return even if its core business improves. Quarterly free cash flow fell from $13.2 billion in March 2026 to $1.7 billion in June and negative $1.2 billion in September. x.com 

Meta's valuation is compelling again because its operating-cash-flow multiple has fallen while revenue growth accelerated over the past year. It trades at 12x operating cash flow, close to 10x 2027 operating cash flow. Its unique position should make it one of the AI era's biggest winners, with Muse becoming its best asset in the long run. The equity raise's timing was unwelcome, but that is now behind it. x.com 

Meta's better-than-expected revenue is why it should return to its roughly $800 all-time high. Revenue rose 26.1% year over year to $64.60 billion, above the $63.37 billion analyst estimate; quarterly EPS was $3.83 and net income was $9.86 billion. x.com  x.com 

Meta's expected $700 billion share raise would dilute investors while a non-voting class preserves Zuckerberg's control. With AI bond financing effectively closed, that is how it plans to fund its needs. X's growing ad inventory should lower ad prices enough to pull small advertisers' budgets away from Meta. x.com  x.com  x.com 

Meta's ad engine is still growing, and its higher AI spending comes with a stronger revenue outlook. Revenue was $64.6B versus $63.4B expected, with $63.1B in ads; the Q4 guide midpoint of $74.5B beat $73.7B expected. Meta raised only the capex floor to $135B, leaving the $145B ceiling unchanged. The roughly $10B legal charge depressed reported EPS, not ads. Overweight, $1,004 target with 41% upside. x.com  x.com