Meta Platforms' Q2 report left investors disappointed due to lack of clarity on its cloud strategy and the company's large planned capital expenditure of $130-$145 billion by 2026. CEO Mark Zuckerberg prefers selling AI intelligence over raw compute, but the author argues that low-margin revenue now is better than uncertain future profits. Despite these concerns, Meta is seen as well-positioned among hyperscalers to benefit if its AI infrastructure is recognized as a revenue asset rather than just a cost. The author maintains a Buy rating, awaiting clearer monetization of Meta's AI investments.
Meta has agreed to an $18 billion legal settlement, which translates to about $1 billion per year—an amount negligible compared to its substantial revenue and earnings. The settlement resolves regulatory uncertainties, allowing Meta to focus on its c...
Meta agreed to pay up to $18 billion and implement child safety measures in a settlement with attorneys general from 29 states. The deal includes a unique clause where states will not sue Meta under existing child safety laws for using children's dat...
In Q2 2026, Alphabet and Meta both reported strong revenue growth, with Alphabet reaching $119.8 billion and Meta $60.8 billion. Alphabet's AI and cloud services drove a 34% operating margin and an 82% increase in Google Cloud revenue, showing robust...
Nvidia is enhancing its hardware support for Chinese AI models like DeepSeek and Alibaba's Qwen to stay competitive against domestic chipmakers and maintain its lead in AI infrastructure. This move comes as US lawmakers grow concerned about the risin...
Palo Alto Networks CEO Nikesh Arora predicts a collapse in most AI cloud companies once GPU scarcity ends but identifies Nebius as a rare 'neoscaler' with durable advantages. Nebius boasts $575 million in AI cloud revenue, a 50% adjusted EBITDA margi...
