Freedom: Meta doubles down on AI, Rocket Lab prepares an $8bn deal

Freedom analysts have presented a review of companies that are in the market spotlight. It includes Meta Platforms, PepsiCo, Rocket Lab and Delta Air Lines. Experts assessed the latest corporate developments, companies’ financial results and their potential impact on share prices.

Read more about this investment idea, as well as other key developments in global markets, in Freedom Broker investment review No. 349.

Meta is developing its own cloud platform for artificial intelligence

Meta Platforms is one of the world’s largest developers of artificial intelligence technologies and digital platforms, and the owner of Facebook, Instagram and WhatsApp.

Meta Platforms is considering creating its own cloud platform that would enable it to provide customers with computing power and access to AI models. According to Freedom Broker analysts, the project is still at an early stage and is unlikely to have a material impact on the company’s financial results in the near term. However, in the future, its own cloud infrastructure could become an additional revenue stream and improve the efficiency of the data centers under construction.

PepsiCo beats profit and revenue forecasts

PepsiCo is an international food and beverage manufacturer producing products under the Pepsi, Lay's, Gatorade, Quaker and other brands.

PepsiCo reported second-quarter financial results that were better than market expectations. Adjusted earnings per share came in at $2.20 versus the consensus estimate of $2.19, and revenue rose 6.4% to $24.2bn. Despite the strong report, the company’s shares fell by around 3% after the results were released due to management’s cautious outlook on the recovery in demand in North America.

Rocket Lab plans to buy Iridium for $8bn

Rocket Lab is a US space company specializing in rocket launches, satellite manufacturing and the development of space infrastructure.

Rocket Lab announced its intention to acquire satellite operator Iridium Communications for about $8bn. Freedom Broker analysts believe the deal will enable the company to become a vertically integrated space-infrastructure operator and expand sources of recurring revenue. At the same time, the key risk remains the significant amount of financing required to complete the deal.

Delta Air Lines increases profit and confirms full-year guidance

Delta Air Lines is one of the largest US airlines, operating domestic and international passenger services.

Delta Air Lines reported quarterly profit above market expectations. Adjusted earnings per share were $1.56 versus a forecast of $1.49, and revenue rose 14% to $17.7bn. The company reaffirmed its profit guidance for the full year 2026 and expects free cash flow of $3–4bn.

What Freedom Broker analysts think

Freedom Broker has previously highlighted these companies. Delta Air Lines beat market expectations for the second quarter and raised its full-year outlook thanks to resilient demand for air travel. 

For Rocket Lab, investors reacted positively to strong results, a record order backlog and the potential for further business growth. In turn, PepsiCo delivered financial results above analysts’ forecasts, but management’s cautious comments on the recovery in demand in North America put pressure on the share price. 

As for Meta, Freedom Broker previously wrote about a large-scale expansion of computing capacity for the development of artificial intelligence, as well as a possible major agreement with Anthropic to lease infrastructure, which could become an additional source of revenue for the company and improve the efficiency of the use of its data centers.

Not an individual investment recommendation.