Michael Burry's Grim Warning: Meta Just Crossed A Line

Core Viewpoint - Michael Burry criticizes Meta Platforms, Inc. for its significant investment in AI infrastructure, suggesting it undermines the company's asset-light business model and could lead to a decline in return on invested capital (ROIC) [1][2][3] Group 1: Investment Strategy - Meta is committing to $600 billion in capital expenditures for data centers, energy grids, and custom chips through 2028, indicating a shift towards a capital-intensive business model [2] - The introduction of Meta Compute is expected to drastically increase the invested capital, which could negatively impact the efficiency of Meta's business model [3] Group 2: Market Reaction - Following Burry's critique, Meta's stock price fell by more than 2%, trading at $628.13 [4] - Burry remains one of the few contrarian voices expressing skepticism about Meta's future amidst the industry's AI arms race [3][4]