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Meta raises its 2026 capex to between $125B and $145B, exceeding analysts' estimates, after previously forecasting $115B to $135B; META drops 6%+ after hours

Meta Platforms Inc. raised its spending outlook for the year, extending its streak of plowing historic levels of investment …

Bloomberg Riley Griffin

Discussion

  • @mikeisaac Rat King on x
    oh lol this is why meta stock is falling — they absolutely fucken love burning cash on AI [image]
  • @munster_gene Gene Munster on x
    $META is down 6% because of the capex guide. Deja vu: We saw this when they reported Sep-25. Capex is expected to grow this year by 94%, vs. the Street was expecting 76%. My take: I continue to be surprised by investors negative capex reaction. We have enough datapoints from
  • @supbagholder @supbagholder on x
    Everytime $META increases capex guide, it's telling you it expects higher operating cash flow. But continue selling.
  • @ericjackson Eric Jackson on x
    CapEx came in BELOW expectations for all Mag 7 names tonight — except META who raised above
  • @munster_gene Gene Munster on x
    $META Daily Active People was 3.56B, up 4%. hats a step down from 6.9% in Dec, vs. 7.6% in September and 6.4% in June and 5.9% in March, 5.0% in Dec 24 and 4.8% in Sep 24. My take: it's good but not great. Would have liked to have seen more of a step up given Meta AI search
  • @rihardjarc Rihard Jarc on x
    $META earnings: - Revenue up 33% YoY! - EPS $10.44 (est $6.67) - Q2 rev guidance $60 B (inline with expectations) - CapEx guidance up from $115 - $135 B to $125-$145B The rise in CapEx guidance may not be to the market's liking, but it's not surprising to me; Zuck always goes
  • @danielnewmanuv Daniel Newman on x
    $META with a huge EPS beat and a capex raise. Zuck has been clear that he doesn't have enough compute.
  • @mikeisaac Rat King on x
    a brief interlude to say meta earnings are fucken insane from a shareholder POV 33 percent increase in revenue! 35 percent increase in costs! 61 PERCENT increase in NET INCOME YoY bonkers [image]
  • r/technology r on reddit
    Meta's Reality Labs lost over $4 billion in first quarter / The Reality Labs unit has now accumulated over $80 billion in total operating losses since late 2020.
  • @munster_gene Gene Munster on x
    $META grew revenue up 33% vs. 31%. For the June quarter, they effectively guided to $61B in revenue, up 28% vs. the just reported 33%. My take: Still impressive growth off of hard comps.
  • @garymarcus Gary Marcus on x
    Sheer insanity.  Amazon, Google, Microsoft, and Meta collectively are spending more money than the Manhattan Project *every single month*.  More than 12x the Manhattan Project every year.  And what they have got to show for it?  None are making major profits on AI; none has a tec…
  • @munster_gene Gene Munster on x
    $META CFO would not comment on capex for 2027, but said they believe compute is increasingly important.  My take: This rhymes with Google's comment tonight that they expect capex next year to be up “considerably” The Street is expecting Meta capex to grow at 9% in 2027.  I expect…
  • @hedgeyecomm @hedgeyecomm on x
    I am sorry... hate on $META all you want. But Zuck has the right messaging and strategy here. Not just in the AI agent thesis, but on the personalized content recommendation.
  • @supbagholder @supbagholder on x
    Meta's AI story is fundamentally different from the hyperscalers. When growth inevitably slows, cloud players (already ~30% margin buisinesses) will compete aggressively on price to defend market share. AI will becomes a margin compression story. Meta is the opposite.