Meta boosts annual capex sharply on superintelligence push, shares surge

Group 1 - Meta has increased its capital spending plans for 2026 by 73%, aiming for "superintelligence" to enhance personalized AI for its users [1][5] - Shareholders supported CEO Mark Zuckerberg's capital expenditure strategy, resulting in a 10% rise in Meta's stock after a 24% increase in advertising revenue for Q4 [2][6] - The company forecasts capital expenditure for 2026 to be between $115 billion and $135 billion, driven by infrastructure costs and higher operating expenses [4] Group 2 - Meta's advertising revenue surged to $58.14 billion in Q4, up from $46.78 billion the previous year, with capital expenditure rising by 49% [6] - The company has launched ads on WhatsApp and Threads, intensifying competition with platforms like X, while Instagram's Reels competes with TikTok and YouTube Shorts [7] - Analysts suggest that Meta's current valuation is not demanding, with significant returns coming from its core business supported by AI infrastructure [8]