"Importantly, the social media giant also revealed that it plans to spend $115 billion to $135 billion on AI in the coming year, a substantial increase from the $72.22 billion it spent on AI in 2025 and well above Wall Street's expectations for 2026. Despite balking at its big spending plans announced in its last quarterly earnings, Wall Street reacted favorably to the news."
"The key difference this time around seems to be that the company's quarterly advertising revenue came in well above expectations. CFO Susan Li fueled confidence in Meta's growth plans when she said on the earnings call that the company's AI endeavors would be financed with cash rather than debt, likely generated by its advertising success. What it means: The earnings were a key update on the AI race, showing that the company is successfully generating cash from other areas to fund its AI ambitions."
Meta reported Q4 2025 revenue of $59.9 billion and EPS of $8.88, beating forecasts of $58.4 billion and $8.16. The company plans to spend $115 billion to $135 billion on AI in the coming year, up from $72.22 billion in 2025 and above Wall Street expectations for 2026. Strong quarterly advertising revenue exceeded expectations and supported investor confidence. CFO Susan Li said AI investments will be financed with cash rather than debt. The earnings showed Meta generating cash from core operations to fund AI ambitions. Analysts remained bullish on growth prospects into 2026 and the stock rose around 9-10%.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]