"On February 11th, Pershing Square's Bill Ackman disclosed a significant new stake in Meta, describing it as "one of the world's greatest businesses" with strong long-term upside from AI integration. Ackman dumped Chipotle, Nike, and Hilton to make room for Meta, Amazon (Nasdaq: AMZN), and Alphabet. That's a bet on the Magnificent Seven over consumer discretionary, reflecting conviction that Meta's AI infrastructure investments will pay off."
"Meta Platforms closed the week at $639.77, down 3.28% from February 6. The S&P 500 fell just 1.29% over the same period, while the Nasdaq 100 dropped 1.27%. It's another losing week for Meta, and the stock is now down 13% from where it closed the day after reporting blowout earnings. Let's dive into the three storylines that drove price action for Meta Platforms (NASDAQ:META | META Price Prediction) this week."
"I defended the trade on 24/7 Wall St. yesterday. Amazon now trades for half the forward P/E of Walmart. Meta is now down 13% from posting outstanding earnings and once again proved its AI spend is going to drive significant revenue acceleration. The sell-off in these names feel more than overdone right now. The $135 Billion Capital Expenditure Question Meta guided to $115 to $135 billion in capital expenditures for 2026, a staggering commitment to AI infrastructure and technical talent."
Meta closed the week at $639.77, down 3.28% from February 6 and 13% below its post-earnings close, while broader indexes fell roughly 1.3%. Year-to-date performance shows a 3.08% decline with one-year shares off 11.91% from February 13, 2025, increasing distance from a $795.06 52-week high. Bill Ackman disclosed a large new stake, reallocating from consumer discretionary to tech names and sparking retail sentiment to spike. Meta guided $115–$135 billion in 2026 capital expenditures, a dramatic increase aimed at AI infrastructure and technical talent following a large recent rise in quarterly capex.
Read at 24/7 Wall St.
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