Quick Read – META’s ad engine runs at ~62% EBITDA margin, absorbing Wall Street’s feared depreciation hit while Q1 2026 revenue surged 33% to $56 billion. – META’s 40% operating margin and forward P/E of 21 outclass GOOGL, SNAP, and PINS on every key profitability and valuation…
tric. – Zuckerberg’s pivot to renting surplus GPU capacity as a wholesale cloud turns feared balance-sheet dead weight into an external revenue stream. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Meta didn’t make the cut. Grab the names FREE today
I keep hitting the buy button on Meta Platforms (NASDAQ:META), and the reason is simple: the market is pricing this company as if the AI capex bill will crush the P&L, and the numbers say the opposite. Shares closed at $646.01 on July 17, down 7.6% over the trailing year and 1.96% year to date. I read the raised $125 to $145 billion capex guide as a receipt for compounding infrastructure returns.
Three numbers keep pulling me back. The Custom Silicon Shift On the Q1 2026 call, CFO Susan Li said the capex bump reflected “higher component pricing this year and, to a lesser extent, additional data center costs to support future-year capacity.” Mark Zuckerberg then flagged that Meta is rolling out “more than one gigawatt of our own custom silicon that we are developing with Broadcom” alongside AMD chips complementing the NVIDIA systems. That MTIA blend, co-developed on a cost-efficient 2nm architecture, structurally lowers the component inflation premium and smooths the downstream depreciation hit that bears model uniformly.