The 6% drop after hours isn't about capex. It's about Susan Li telling the market 2027 is when this spend pays off, not 2026.
$145B is loud. But Meta's ad revenue per DAU is up, and AI-driven targeting plus Reels recommendations are pulling more from the same user base. Capex/revenue near 70% looks insane only if you think Meta is GE in 2002. They aren't. They're funding the next ad-tech cycle while the rest of Mag 7 still pretends ROI is next quarter.
The interesting tell is the related tickers on this topic: CRWV at $113.31 and AVGO at $406.94. CoreWeave didn't catch a bid AH despite being a direct beneficiary of hyperscaler GPU demand. That's the real signal. If CRWV and AVGO underperform into next week, the market is pricing AI infrastructure as commoditized, not strategic. That breaks the trade more than any Meta headline.
I'm not a buyer at $620.30 because the next 2 prints will probably re-test margin discipline. But anyone selling here on the capex headline alone is anchored on the wrong KPI. Watch ad load, ad price, and Reels DAU on the call. If those hold, $145B is a feature, not a bug.
Selloff has 1 to 2 weeks left. Then any AI ad-revenue beat snaps it back to $650.
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- Adz5150·06:01That’s a fair point. I think timing of payoff matters just as much as spending size, the market gets a lot less patient when the return window gets pushed further out.LikeReport