META 2Q25:Product Innovation Driving Potential Revenue Acceleration-Part2

We produce META previews each quarter. Last quarter, we successfully backed a contrarian thesis and identified META's significant beat opportunity in 1Q25.

This quarter, we remain excited and have strengthened our confidence in META's revenue growth for both the current quarter and second half after investing additional research resources. While CAPEX investments may lead to gross margin decline next year, considering AI is the most important growth theme for the next decade, we believe the market will be more forgiving of margin pressure than during META's large-scale Reality Lab investments, especially with more revenue upside potential.

We recently spoke with 15 experts and have updates on several key topics:

1. Overall ad revenue trends for 2Q25 and 2025 expectations

2. Tariff impact

3. TEMU/SHEIN impact

4. Major product developments

5. Recommendation algorithm progress

6. META AMM status

7. META AI progress

8. CAPEX updates

9. TikTok growth trends

In this Part 2 report, we primarily discuss points 6-9.

META AMM Progress