Strauss: Meta could run out of cash and tap net debt territory by 2027

Group 1: Meta's Challenges - Meta is facing significant concerns regarding its AI assistant, which has a reported exposure of 1 billion users, but this does not equate to active usage compared to competitors like ChatGPT or Gemini [1][2] - The company's advertising strategy for the upcoming year heavily relies on the usage of its AI assistant, while it is also struggling with the go-to-market strategy for its Llama project [2] - Financial projections indicate that Meta may run out of cash and enter net debt territory by 2027 due to current operational and capital expenditure trends [2] Group 2: Amazon's Position - Amazon is perceived to have the least exposure to potential market bubbles due to its diversified business model, which includes robotics and retail, and currently has low exposure to AI within its cloud services [5][6] - Despite low current exposure, Amazon's AI-related investments are expected to rise significantly, with projected growth in AWS at 21%, surpassing the street's estimate of 19% [6] - The company is expected to catch up in AI infrastructure by 2026, with substantial investments in projects across various states totaling over $10 billion [9] Group 3: Nvidia and CoreWeave Risks - Nvidia and CoreWeave are identified as potential losers in the event of a market bubble, despite their current capacity constraints limiting revenue growth [11][12] - The exposure of these companies to AI makes them particularly vulnerable if Meta faces financing issues that lead to cuts in capital expenditures [12][13] - The potential for a bubble to burst could disproportionately affect pure-play AI companies like Nvidia and CoreWeave, which are heavily reliant on continued investment and growth in the sector [13]