Meta has raised its 2026 capital expenditure guidance to $125-$145 billion, nearly five times last year's $28 billion, focusing heavily on AI infrastructure. Despite strong ad revenue growth, investors worry about the lack of clear AI-driven monetization and the high spending before proven returns. The company is also cutting 10% of its workforce while investing heavily in expensive chip technology amid soaring semiconductor prices, a phenomenon called chipflation. Meta's strategy includes diversifying hardware suppliers to mitigate supply chain constraints, but the costly AI infrastructure race poses significant financial risks in the near term.
Reddit shares fell about 6% after Meta launched a test app called Forum on Apple's iOS, aiming to compete with Reddit's online discussion groups. Analysts warn this could reduce Reddit's appeal to casual users seeking quick answers, potentially erodi...
Meta has introduced Forum, a new standalone app designed to enhance Facebook Groups by fostering deeper discussions and community engagement, similar to Reddit. The app allows users to post with nicknames, view group activity, and features AI tools l...
Meta Platforms is currently undervalued, trading at a price-to-earnings ratio of 20-22 times without a premium for its AI-driven growth. The company’s significant investments in AI are fully utilized, supporting an operating margin above 40%. Despite...
Meta is upgraded to a Strong Buy with a price target of $1,000 within 30 months, driven by strong financial performance and AI-related growth. In Q1 2026, Meta reported 33% revenue growth and maintained operating margins above 40%, despite significan...
Meta has reached a settlement with the Breathitt County School District in Kentucky, ending a lawsuit accusing the company of causing social media addiction among teenagers. The case was part of a larger group of over 1,200 similar lawsuits consolida...
