Overview
- Meta said on its Q3 call that AI and data‑center spending will rise further into 2026, and the stock fell more than 10% as multiple banks cut price targets while largely keeping Buy or Overweight ratings.
- Bloomberg reported Meta is seeking at least $25 billion in investment‑grade bonds and has drawn about $125 billion in orders in what is expected to be the year’s largest U.S. corporate bond sale.
- Mark Zuckerberg cited a $60 billion annualized run rate from AI‑powered ad tools, yet analysts questioned how much massive internal compute outlays will translate into broader, durable revenue without a cloud business.
- Across Big Tech, capex is surging: Alphabet lifted full‑year spend guidance to roughly $91–$93 billion, Microsoft reported $35 billion in the latest quarter, Amazon outlined about $125 billion for 2025, and the four leaders topped $360 billion over the past 12 months.
- Regulators and commentators warned about debt‑funded overbuild and rapid asset depreciation, even as Fed Chair Jerome Powell noted today’s AI investment differs from the dot‑com era because leading firms are profitable and self‑funding significant portions.