META once again gave an eye-popping estimate for what it expects to spend on its AI ambitions. Yet Meta stock rocketed higher following it fourth-quarter results late Wednesday, in contrast to the sell-off that followed its previous earnings report in October.
Meta said Wednesday that it expects capital expenditures of $115 billion to $135 billion for 2026. That blew past previous analyst estimates of $110.7 billion in 2026 capex ahead of the report. The spending is meant to bolster the company’s AI push through data centers and other infrastructure. Investors turned negative on such spending late last year, questioning whether Meta could see strong enough returns from such massive spending. Agentic shopping as a topic has captured attention in the e-commerce world. WalmartWMT, for instance, has struck deals recently with ChatGPT creator OpenAI and Google to allow shoppers to buy its products directly through AI chatbots. Still, AI drives a tiny fraction of online shopping overall. But, in Zuckerberg’s view, it is a promising way to use AI “superintelligence” to help people find what they want on Facebook, Instagram and WhatsApp. Do you think that too much spsnding on AI will reach optimum and dangerous level ?
