Meta Raises Capex Guidance to $125–145B Despite 33% Revenue Growth
Meta posted 33% quarterly revenue growth but raised full-year capital expenditure guidance to $125–145 billion, up from a prior $115–135 billion range due to higher component prices and data center costs. Shares are down 8% year-to-date as investors weigh rising AI and metaverse spending alongside regulatory pressures.
1. Strong Quarterly Revenue Growth
Meta’s quarterly revenue rose 33% year-over-year, driven by robust ad sales and growing AI-driven engagement across its platforms. This performance signals continued advertiser confidence despite broader market headwinds.
2. Elevated Capex Guidance
Management lifted its full-year capital expenditure forecast to $125–145 billion, a jump from the previous $115–135 billion outlook, citing higher component costs and expanded data center builds to support AI and metaverse projects.
3. Investor Reaction and Outlook
Shares have declined 8% year-to-date as stakeholders weigh the impact of heftier capex on margins against long-term AI opportunities and evolving regulatory scrutiny. Analysts have adopted a cautious stance pending clearer visibility on AI profitability and compliance developments.