not all AI investment are the same--META/MSFT

A. META

1. MeTA start to show that AI investment is paying back, becoming a major driver of its revenue growth.

The management gave a higher capex guidance than the street's estimate.

2. But the management also said, net operating income in 2026 will be above 2025 leve, meaning no big draw down of earnings by higher capex.

Meta may be entering a new cycle of AI investment, a positive loop. If true will be veyr positive to the stock price. 

However, we need to wait and hear their CC. 

 

B. msft

Higher capex, but did not give any detail yet about how AI investment is paying back

Hopefully, they will said something in Call. 

Not a trade recommendation---I hold Meta.