– Andrew Macken
From Halloween to the Melbourne Cup – it’s earnings season yet again.
So far, our investee companies’ financial results have been very pleasing. Despite this, some short-term stock price reactions to results have been mixed.
Meta, for example, fell 11% after reporting very strong revenue growth that has even accelerated recently. The poor reception is likely because Meta is accelerating the build-out of its data center capacity.
Yet, as Meta points out, there is no downside to the build-out. They will likely need extra capacity in the medium term for their new AI products – and therefore today’s accelerated build-out will prove to be extremely valuable. But if they don’t need it for AI, their core advertising business will simply grow into the capacity over a handful of subsequent years.
It’s a timing issue, at worst. And the stock market reaction, fundamentally, does not make much sense.
Or take Blackstone, which reported fee-related earnings growth of +26% versus one year prior. This growth was well ahead of broker expectations. Furthermore, as we’ve discussed before, the business remains extremely well-positioned for long-term structural growth.
And yet, Blackstone’s stock price declined by 4%. As with Meta, many investors are focused on today’s negative market narratives – in Blackstone’s case, concerns relating to the quality of private credit.
When we put it all together, despite the mixed reactions of some stock prices, we remain very happy with the fundamentals we are seeing in Montaka’s investee companies.
And we might add, there were positive contributors during the month, including LVMH, Alphabet, Amazon and MongoDB.
This month, in From Transistors to Transformations: Building AI’s Digital Backbone, Amit simplifies the profound structural change happening in the semiconductor supply chain. The proliferation of AI into many parts of the economy – which remains in its infancy – has forced chip fabricators to innovate and pack more transistors (i.e. compute) into each chip. This innovation, along with surging demand, is throwing up exciting investment opportunities.
In My investing story: Introducing our new Senior Analyst, Tim Le, Montaka’s newest Senior Investment Analyst, Tim Le, shares some fascinating stories from his background, career progression, and decision-making process around joining Montaka. Tim explains why he was drawn to Montaka, in particular our deep research, commitment to evolution, and team culture.
Andy just returned to New York after visiting Australia, where he met with Montaka and MFF clients to discuss today’s complex market environment. In this month’s Spotlight Series Podcast, we share an excerpt from one of Andy’s presentations.
Sincerely,
Andrew Macken
Podcast: Join the Montaka Global Investments team on Spotify as we share real-time examples and investing tips that govern our stockpicks. Click below to listen. Alternatively, click on this link: https://podcasters.spotify.com/pod/show/montaka
Note: Montaka is invested in Meta, Blackstone, LVMH, Alphabet, Amazon and MongoDB.
Andrew Macken is the Chief Investment Officer at Montaka Global Investments.
Update from the PM – November 2025
– Andrew Macken
From Halloween to the Melbourne Cup – it’s earnings season yet again.
So far, our investee companies’ financial results have been very pleasing. Despite this, some short-term stock price reactions to results have been mixed.
Meta, for example, fell 11% after reporting very strong revenue growth that has even accelerated recently. The poor reception is likely because Meta is accelerating the build-out of its data center capacity.
Yet, as Meta points out, there is no downside to the build-out. They will likely need extra capacity in the medium term for their new AI products – and therefore today’s accelerated build-out will prove to be extremely valuable. But if they don’t need it for AI, their core advertising business will simply grow into the capacity over a handful of subsequent years.
It’s a timing issue, at worst. And the stock market reaction, fundamentally, does not make much sense.
Or take Blackstone, which reported fee-related earnings growth of +26% versus one year prior. This growth was well ahead of broker expectations. Furthermore, as we’ve discussed before, the business remains extremely well-positioned for long-term structural growth.
And yet, Blackstone’s stock price declined by 4%. As with Meta, many investors are focused on today’s negative market narratives – in Blackstone’s case, concerns relating to the quality of private credit.
When we put it all together, despite the mixed reactions of some stock prices, we remain very happy with the fundamentals we are seeing in Montaka’s investee companies.
And we might add, there were positive contributors during the month, including LVMH, Alphabet, Amazon and MongoDB.
This month, in From Transistors to Transformations: Building AI’s Digital Backbone, Amit simplifies the profound structural change happening in the semiconductor supply chain. The proliferation of AI into many parts of the economy – which remains in its infancy – has forced chip fabricators to innovate and pack more transistors (i.e. compute) into each chip. This innovation, along with surging demand, is throwing up exciting investment opportunities.
In My investing story: Introducing our new Senior Analyst, Tim Le, Montaka’s newest Senior Investment Analyst, Tim Le, shares some fascinating stories from his background, career progression, and decision-making process around joining Montaka. Tim explains why he was drawn to Montaka, in particular our deep research, commitment to evolution, and team culture.
Andy just returned to New York after visiting Australia, where he met with Montaka and MFF clients to discuss today’s complex market environment. In this month’s Spotlight Series Podcast, we share an excerpt from one of Andy’s presentations.
Sincerely,
Andrew Macken
Podcast: Join the Montaka Global Investments team on Spotify as we share real-time examples and investing tips that govern our stockpicks. Click below to listen. Alternatively, click on this link: https://podcasters.spotify.com/pod/show/montaka
Note: Montaka is invested in Meta, Blackstone, LVMH, Alphabet, Amazon and MongoDB.
This content was prepared by Montaka Global Pty Ltd (ACN 604 878 533, AFSL: 516 942). The information provided is general in nature and does not take into account your investment objectives, financial situation or particular needs. You should read the offer document and consider your own investment objectives, financial situation and particular needs before acting upon this information. All investments contain risk and may lose value. Consider seeking advice from a licensed financial advisor. Past performance is not a reliable indicator of future performance.
Related Insight
Share
Get insights delivered to your inbox including articles, podcasts and videos from the global equities world.