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Meta’s AI Bet Divides Wall Street as Cheaper Valuation Meets Soaring Capex

Investor opinion is split over heavy AI spending versus a cheaper valuation.

Overview

  • Meta raised its 2026 capital spending plans for AI infrastructure, a disclosure that contributed to a post‑earnings stock drop late last year.
  • Scale and profitability remain substantial, with 3.54 billion family daily active people and Q3 2025 revenue of $51.2 billion, 98% from ads, and about a 40% operating margin.
  • Recent coverage includes buy‑and‑hold arguments casting Meta as an AI leader, contrasted with Jim Cramer’s critique that “Meta’s lost its way.”
  • Meta’s shares trade around 20–21 times forward earnings compared with Alphabet near 29.5, according to the reporting.
  • Analysts referenced in the coverage expect faster 2025 revenue growth for Meta than Alphabet, roughly 21.3% versus 14.4%.