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Meta Deepens AI Push With 20-Year Power Deals as 2026 Capex Set to Rise

Investor focus now centers on execution with a next‑gen Llama expected in the first half of 2026.

Overview

  • Wells Fargo trimmed its price target to $795 but kept an Overweight rating, forecasting $31–$32 in 2026 EPS and citing growth tied to a next‑generation Llama that analysts expect in the first half.
  • Meta disclosed 20‑year power purchase agreements with Vistra for electricity from three U.S. nuclear plants, including facilities in Ohio and Pennsylvania, to support expanding AI and data‑center needs.
  • CFO Susan Li signaled capex dollar growth will be notably larger in 2026 than 2025 after roughly $39 billion in 2024 and an estimated $71 billion last year.
  • Management reports AI is already boosting engagement and reducing advertiser costs through Advantage+ tools, indicating a potential monetization path in the core ads business.
  • Meta’s scale and profits — 3.54 billion daily active users and $37.7 billion in net income on $141.1 billion of revenue in the first nine months of 2025 — provide funding capacity, though the payoff timeline remains uncertain.