Magnificent 7 Crush EU Giants—Jamie Dimon Tells Europe: 'You're Losing'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 11 2025
0mins
Should l Buy META?
Source: Benzinga
JPMorgan Chase CEO's Warning: Jamie Dimon highlighted that Europe is falling behind the U.S. in economic performance, with its GDP share dropping from 90% to 65% over the past 10-15 years due to sluggish growth and insufficient investment.
Market Capitalization Disparity: The combined market capitalization of top U.S. tech companies exceeds $18.3 trillion, vastly outpacing Europe's largest firms, which total only $2.1 trillion, indicating a significant structural divide in financial markets.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 649.810
Low
655.15
Averages
824.71
High
1117
Current: 649.810
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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AI Integration and Efficiency: The company is focusing on AI technologies to enhance internal efficiency, reporting a 30% increase in software engineering output due to the adoption of AI coding tools, which is crucial for reducing costs and improving productivity.
Business Messaging Growth: Meta's business messaging initiative is growing rapidly, with a 54% increase in revenue driven by WhatsApp paid messaging, although it still represents a small portion of overall revenue, indicating potential for future expansion.
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- Lowered Revenue Guidance: Pinterest projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, reflecting pressure from retail advertisers cutting budgets due to tariffs.
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- Surge in Capital Expenditures: Companies like Google, Microsoft, Meta, and Amazon are expected to spend nearly $700 billion on capital expenditures in 2023, reflecting strong investor confidence in AI technology and intensifying market competition.
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Meta's Advertising Growth: Meta's latest earnings report highlights that its advertising business remains the primary driver of growth, with expectations to spend around $125 billion on capital expenditures by 2026, indicating a need for additional growth drivers.
Reality Labs Losses: Meta's Reality Labs is projected to see its losses peak in 2026, with the segment having reported significant losses in previous years, raising concerns about its long-term profitability despite a shift towards more realistic investments.
AI Integration and Efficiency: The company is focusing on AI technologies to enhance internal efficiency, reporting a 30% increase in software engineering output due to the adoption of AI coding tools, which is crucial for reducing costs and improving productivity.
Business Messaging Growth: Meta's business messaging initiative is growing rapidly, with a 54% increase in revenue driven by WhatsApp paid messaging, although it still represents a small portion of overall revenue, indicating potential for future expansion.
See More
Meta May Consider Stock Split in 2026
- Stock Split Motivation: Meta has yet to execute a stock split despite its stock price rising over 200% in the past three years, currently trading around $670, which may deter some investors due to its psychological price barrier.
- Market Performance Analysis: Although Meta's stock has declined over 6% in the past year, its market capitalization remains at $1.7 trillion, indicating the company's strong position and potential investment appeal in the market.
- AI Investment Priority: Meta has recently focused on enhancing its AI capabilities and infrastructure investments, suggesting that a stock split is not a current priority but may be reconsidered in 2026.
- Future Outlook: Should Meta's stock gain momentum and rise quickly in the coming year, it may contemplate executing a stock split, aligning itself with other tech giants to attract more investors.
See More
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- Mixed Quarterly Performance: Pinterest's quarterly results missed revenue and earnings expectations, leading to a 16.83% drop in share price, reflecting pressure from retail advertisers cutting budgets due to tariffs, which impacts the company's revenue outlook.
- Strong User Growth: Despite challenges, Pinterest reported a 12% year-over-year increase in global monthly active users for Q4, reaching 619 million, surpassing Wall Street's expectation of 613 million, indicating sustained user attraction on the platform.
- Sales Outlook Downgrade: The company projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, suggesting pressure on future revenue growth that may affect investor confidence.
- Analyst Downgrades: Multiple Wall Street firms downgraded Pinterest's stock or reduced target prices following the earnings report, with concerns including decelerating growth, monetization challenges, and intensified competition due to advancements in AI.
See More
Pinterest Reports Mixed Quarterly Results, Shares Drop
- Significant Stock Decline: Pinterest's shares closed at $15.42, down 16.83%, primarily due to mixed quarterly results and a weaker revenue outlook, raising investor concerns about future performance.
- Surge in Trading Volume: The company saw trading volume reach 66 million shares, approximately 311% above its three-month average of 16.1 million shares, indicating strong market reactions to its financial status.
- Strong User Growth: Despite challenges, Pinterest reported a 12% year-over-year increase in global monthly active users for Q4, reaching 619 million, surpassing Wall Street's expectation of 613 million, demonstrating the platform's ongoing appeal.
- Lowered Revenue Guidance: Pinterest projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, reflecting pressure from retail advertisers cutting budgets due to tariffs.
See More
OpenAI and Anthropic Rivalry Intensifies
- Significant User Growth: Anthropic's Claude chatbot saw a 6.5% increase in site visits following its Super Bowl advertisement, propelling it into the top 10 free apps on the Apple App Store, demonstrating its ability to attract users in a competitive market.
- Active User Surge: The daily active users of Claude jumped by 11% post-game, marking the most significant growth within the firm's AI offerings, indicating the effectiveness of its advertising strategy in enhancing user engagement.
- Competitor Performance: In contrast, OpenAI's ChatGPT only experienced a 2.7% increase in daily active users, while Google's Gemini saw a 1.4% rise, highlighting Anthropic's short-term impact on the market.
- Strong Funding Situation: Anthropic closed a $30 billion funding round this week, achieving a post-money valuation of $380 billion, more than double its valuation from September, reflecting ongoing investor confidence and capital inflow into the AI sector.
See More
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- Viral Social Media Impact: Investor Matt Shumer's essay has gone viral, accumulating over 80 million views, highlighting the public's keen interest in AI's potential while sparking a wide range of praise and criticism.
- Warning on AI Applications: Shumer emphasizes that AI's capabilities are underestimated by the public, particularly in fields like law, finance, and medicine, where professionals may face significant job transformations, potentially leading to major industry shifts.
- Surge in Capital Expenditures: Companies like Google, Microsoft, Meta, and Amazon are expected to spend nearly $700 billion on capital expenditures in 2023, reflecting strong investor confidence in AI technology and intensifying market competition.
- Core Message Delivery: Shumer urges workforce individuals to start using and experimenting with AI tools to better understand the impending changes, although he acknowledges that some parts of the essay may need rephrasing to avoid misunderstandings.
See More
