Wall Street is cheering Meta's shift in focus from Reality Labs to Meta Superintelligence Labs. Microsoft's AI spending is going toward Nvidia and AMD chips, as well as its new custom AI accelerator.
Meta Platforms remains a top pick, with accelerating growth and compelling valuation despite aggressive AI-driven CapEx. META delivered 23.8% YoY revenue growth, robust ad margins, and is guiding for up to 30% top-line growth next quarter. AI investments are visibly boosting ad impressions and platform engagement, while Reality Labs losses are peaking with a strategic pivot to smart glasses.
Meta Platforms (META 0.49%) recently reported earnings that handily beat expectations on both the top and bottom lines, but the expected capital expenditures for 2026 were the real highlight of the company's report. In this video, you'll hear why two Fool.com analysts were not only surprised at the rate of spending, but at how the market reacted to it.
With roughly a third of companies reporting thus far, S&P 500 EPS growth for Q4 2025 currently stands at 11.9%. This week, Alphabet, Amazon, and several consumer names take the stage as peak earnings season hits its stride. Potential earnings surprises this week: Disney, CME Group, Take-Two Interactive, Phillips 66 and more.
Meta Platforms, Inc. delivered strong Q4 and FY25 results, with revenue and EPS exceeding consensus and a 7% post-earnings stock jump. Despite macro fears over AI spending, META's fundamentals remain robust, and the current valuation offers an attractive entry for long-term investors. Management guides for Q1 2026 revenue acceleration and is making bold AI and hardware investments, notably in M...
Meta continues to allocate massive sums on AI-related capital expenditures, occasionally raising its forecasts. The business is very profitable, but investors should start to wonder if this spending will pay off.
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