Core Insights - Meta Platforms Inc. is significantly increasing its capital expenditures, projecting between $115 billion and $135 billion for fiscal 2026, primarily to support its "Meta Superintelligence Labs" initiatives [2] - CEO Mark Zuckerberg emphasizes the importance of investing in infrastructure to develop "personal superintelligence," indicating a strong commitment to AI advancements [2][3] - The projected capital expenditures for the tech industry as a whole could reach $528 billion by 2026, with potential growth to $1.2 trillion by 2030 if current trends continue [4] Financial Performance - Meta reported fourth-quarter revenue of $59.89 billion, a 24% increase year-over-year, surpassing consensus estimates of $58.30 billion [5] - The company achieved a profit of $8.88 per share, exceeding analyst expectations of $8.16 [5] - Despite a slight decline of 0.63% in stock price on the day of the earnings report, shares rose by 7.43% overnight following the announcement [5] Market Position - Meta currently leads the AI capital expenditure space, but other major tech companies are also increasing their investments, indicating a competitive landscape [3] - Analysts suggest that while Meta's shares may not score highly on momentum and value, they exhibit a favorable price trend in both the short and long term [6]

Skip to main content Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv Investors punish Big Tech AI spending that delivers slower growth January 29, 20264:35 AM UTCUpdated ago By Aditya Soni and Deborah Mary Sophia Meta logo is seen in this illustration taken June 18, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab Jan 29 (Reuters) - Investors responded to Big Tech earnings this week with a stark warning: they will forgive record sp ...

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Katie Greifeld, taking you through to that closing bell with the global simulcast Carol Massar and Tim Stenovec, join us now. Welcome to our audiences across all of our bloomberg platforms, television, radio, our partnership with YouTube.Carol Massar We should point out, I know it's Fed Day, but you have about $8 trillion in market capitalization set to report earnings in just a moment. Microsoft met Tesla, the bi ...

ToplineFourth-quarter earnings and revenue released Wednesday by Meta exceeded Wall Street’s expectations, as the tech giant said it anticipated increased spending this year as it allocated more resources toward AI. The company previously said it would rapidly increase spending to meet AI goals. Copyright 2024 The Associated Press. All rights reservedKey FactsMeta reported $59.8 billion in revenue and $8.88 earnings per share through Q4, marking an annual increase of 24% and 11%, respectively.Those figures ...

Meta on Wednesday forecast its annual capital expenditure to increase sharply, as the social media giant builds artificial intelligence infrastructure in the pursuit of superintelligence. ...

By Jaspreet Singh Jan 28 (Reuters) - Instagram-owner Meta on Wednesday boosted its capital spending plans for this year by 73% in the pursuit of "superintelligence," an effort to offer deeply personalized artificial intelligence to its large social media user base. Shareholders backed CEO Mark Zuckerberg's ambitious capital outlay, boosting Meta stock 10% in ​extended trading, as the company posted a 24% surge in advertising revenue - its mainstay - for the quarter ended December 31. It also forecast fir ...

Group 1 - Meta Platforms, Inc. is considered one of the best stocks to buy in 2026 for beginners, with a Buy rating reiterated by Wedbush and a price target set at $880 [1] - Meta announced its "Meta Compute" initiative aimed at building AI infrastructure and managing its global data centers, with CEO Mark Zuckerberg highlighting the collaboration of key executives in this effort [2][3] - The company plans to build "tens of gigawatts this decade, and hundreds of gigawatts or more over time" to support its ambitious AI and superintelligence projects [3] Group 2 - Meta develops technological products that facilitate sharing, connection, business growth, and community engagement through various platforms including personal computers, mobile devices, VR, MR headsets, and wearables [4]

Core Insights - Meta has launched the "Meta Compute" initiative aimed at building artificial intelligence infrastructure and managing its global data centers and supplier partnerships to achieve superintelligence [1][3] - CEO Mark Zuckerberg announced that the initiative will be co-led by Santosh Janardhan and Daniel Gross, focusing on technical foundations and strategic capacity planning [2] - Meta is significantly increasing investments in frontier AI, planning to build tens of gigawatts of energy capacity this decade, with a long-term goal of hundreds of gigawatts [3] Investment and Infrastructure - The new computing power targets are expected to consume electricity equivalent to small cities or countries, raising concerns about resource exploitation [4] - Meta has committed up to $72 billion in capital spending for 2025 to support these AI projects [4] - To secure long-term electricity supplies, Meta has entered into 20-year agreements to purchase power from three Vistra nuclear plants and is collaborating on projects for small modular reactors [5]

Core Insights - Meta has announced agreements with three nuclear power providers to support its AI ambitions, including Vistra, TerraPower, and Oklo [1][2] - The projects are expected to add 6.6 gigawatts of power by 2035, surpassing New Hampshire's total demand [3] - Meta's Prometheus supercluster computing system is a key component of its advanced AI development, expected to be operational by 2026 [2][4] Group 1: Agreements and Projects - Meta's agreements with the three nuclear companies aim to secure energy for its Prometheus supercluster computing system [2] - The company will help fund Vistra's nuclear power plants in Ohio and Pennsylvania, enhancing their energy production [4] - TerraPower's projects, funded by Meta, could start generating power by 2032, with potential rights for additional energy from other projects by 2035 [6] Group 2: Job Creation and Industry Impact - The agreements are projected to create thousands of construction jobs and hundreds of long-term operational jobs [4] - Meta's initiatives align with broader industry efforts, as it, Amazon, and Google pledged to triple global nuclear energy production by 2050 [5] Group 3: Strategic Partnerships - OpenAI CEO Sam Altman is a significant investor in Oklo, which is developing advanced nuclear technology [7] - Altman has stepped down from Oklo's board to facilitate customer acquisition with competing companies [7]

Core Viewpoint - Meta Platforms is positioning itself as a leader in the smart glasses market, with the potential to become a major player in consumer electronics by the 2030s, similar to Apple's impact in mobile computing [1][10]. Group 1: Smart Glasses Development - Meta launched its first augmented reality (AR) smart glasses, Meta Ray-Ban Display, in September, which includes a built-in display and integrates Meta AI [5]. - The company is working on the Orion smart glasses, expected to launch in 2027, featuring a built-in display on both lenses for a holographic experience [6]. - Meta has been investing in smart glasses for years and currently holds a 73% market share in smart glasses shipments as of the first half of 2025, up from 66% in the second half of 2024 [9]. Group 2: Revenue Potential - Meta's Reality Labs unit is expected to generate significant revenue from smart glasses, complementing its existing income from targeted advertising [2]. - The integration of superintelligence with smart glasses could enhance their utility, making them primary computing devices, potentially displacing smartphones [8][10]. Group 3: Investment Insights - Hedge fund billionaires have increased their stakes in Meta, indicating confidence in the company's future growth [7]. - Analysts project Meta's earnings to grow at an annual rate of 17% over the next three years, with a median target price of $842.50 per share, suggesting a 26% upside from the current price [12][13].