Meta's $600B U.S. Investment: Bearish or Bullish for Shares?

Core Viewpoint - Meta Platforms plans to invest at least $600 billion in the United States through 2028, a statement made by CEO Mark Zuckerberg following a meeting with President Trump, which adds political significance and media attention [3][4]. Investment Breakdown - The $600 billion figure is intended to represent total U.S. spending, including data center construction, employee salaries, operational expenses, and prior expenditures, rather than just capital expenditure (CapEx) [9][10]. - Meta's expected total operating expenses in the U.S. for 2025 are projected to be around $116 billion, with an assumption that 30% of spending goes to other countries, leading to U.S. spending slightly above $80 billion [10]. Financial Implications - If Meta invests nearly $520 billion in the U.S. from 2026 to 2028, this would be significantly below the projected global revenue of $780 billion over the same period, raising concerns about the feasibility of such an investment [11]. - The statement from Zuckerberg appears to be more of a marketing strategy rather than a concrete financial plan, as the math does not support such a large U.S.-only investment [12]. Stock Forecast and Analyst Ratings - The current stock price of Meta is $755.59, with a 12-month price target of $822.41, indicating an 8.84% upside based on 47 analyst ratings [13]. - Analysts project that for Meta to maintain its operating margin, it would need to significantly increase its revenue growth, which could be bullish for shares [13][14]. - Despite the current Moderate Buy rating, some analysts suggest that there are better investment opportunities available [16][17].