Meta reported a significant increase in capital expenditures, committing to spending $70-72 billion in 2025, nearly double the amount spent in 2024. The focus is on building AI infrastructure at an unprecedented scale, with record-breaking revenue of $51.24 billion in Q3 and 3.54 billion daily active users. Meta’s leadership sees the future growth tied to computing power and AI infrastructure, with capex representing the highest ratio of revenue in company history. While the company’s balance sheet remains strong, free cash flow is expected to compress due to increased investment in AI infrastructure, sparking skepticism in the market despite bullish analyst consensus.

Read more at Yahoo Finance: Meta Sacrifices Near-Term Cash Flow to Outspend Rivals on AI Build-Out