Meta delivered a powerhouse quarter, but Mark Zuckerberg’s "AI or bust" roadmap has Wall Street feeling a bit twitchy. Here’s the breakdown:
The Numbers: Revenue hit $56.3B (+33% YoY) and profit soared 62%. The core ad business is firing on all cylinders, with ad prices up 12%.
The AI Pivot: Zuck is doubling down. Meta raised its 2026 capital expenditure guidance to $125B–$145B to fund "Superintelligence" ambitions.
The "Ouch" Factors:
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Daily users (3.54B) slightly missed estimates due to outages and regional restrictions.
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The Metaverse (Reality Labs) is still a money pit, losing another $4B this quarter ($80B total to date).
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Legal clouds are gathering in the US and EU over child safety and "addictive" design.
Investor Reaction: Despite the profit beat, the stock dipped after hours. Investors are haunted by visions of a "Metaverse 2.0" spending spree without immediate ROI.
Bottom line: Zuckerberg is "comfortable" spending billions to build the future. Investors? Not so much.
ChartMill Market Desk