Meta Beats Q4; Signals $115–$135B 2026 AI CapEx, Shares Jump
Meta Platforms reported a stronger-than-expected Q4: revenue $59.9B (≈24% YoY), EPS $8.88, and net income about $22.8B. Daily active users across Facebook, Instagram, WhatsApp and Threads reached roughly 3.58 billion. Management flagged a major strategic pivot toward AI infrastructure, forecasting 2026 capital expenditures of $115–$135 billion (the company highlighted a midpoint near $130B) and total 2026 expenses of $162–$169 billion to fund data-center expansion, custom AI chips and large-scale model training. Strong advertising demand and robust cash generation helped offset investor concern about rising AI-related costs. Guidance for Q1 2026 revenue was $53.5B–$56.5B. On the market technicals, Meta stock broke a short-term descending channel and was testing resistance near $740; a successful breakout could push toward $780, while failure risks a pullback toward $670. Momentum indicators (MACD, RSI) showed a bullish bias but not overbought. For traders, the combination of record ad-driven profits and an explicit multi-year AI spending plan signals increased capital deployment into data centers, AI chips and cloud infrastructure — themes that could boost related tech and cloud-infra equities and inform sector rotation. Primary keywords: Meta earnings, Meta stock, AI spending, CapEx. Secondary keywords: Q4 revenue, EPS, advertising revenue, data centers, AI infrastructure.
Neutral
The news is neutral for cryptocurrency prices because it primarily concerns Meta’s corporate earnings and a large AI capital expenditure plan that affects tech and cloud-infrastructure equities rather than any specific cryptocurrency. Positive elements — a Q4 beat, strong ad growth, large cash generation and a bullish stock technical setup — support risk-on sentiment which can indirectly lift crypto markets as traders increase exposure to growth assets. Conversely, the announced $115–$135B 2026 CapEx and higher operating expenses signal increased capital intensity and potential margin pressure, which could reduce risk appetite if investors focus on higher spending and longer payback periods. No cryptocurrencies or blockchain projects are directly tied to Meta in these summaries, so the direct price impact on any specific coin is limited. Short-term: likely modest positive spillover to risk assets including top-tier cryptocurrencies if market sentiment remains constructive. Long-term: neutral-to-cautious — heavy capital spending and possible margin effects keep upside for crypto conditional on broader tech sector performance and macro liquidity.