Meta Capex Acceleration and Free Cash Flow Concerns

3 months ago

"So here here's the quote. Yeah. So they said so every analyst on every call is asking the exact same question right like the spend the revenue where is it going to show up and they said it has become clear that this is Meta that our compute needs have continued to expand meaningfully including versus our expectations last quarter. We are still working through our capacity plans, but we expect to invest aggressively to meet these needs both by building our own infrastructure and contracting with thirdparty cloud providers. We anticipate this will provide further upward pressure on our capex um capex dollar growth will be notably larger in 26 and 25."

The excerpt highlights Meta's aggressive investment plans to address expanding compute needs amid the AI boom. It underscores that despite strong revenue growth, Meta faces rising expenses and slowing free cash flow due to anticipated aggressive capex spending in 2025 and 2026.

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