$META $NVDA
The Meta 12% sell off feels weird for this one reason:
How is the street giving Nvidia a $5T valuation on the backs of increased capex but at the same time punishing Meta for increasing capex?
I don’t really get it. There are only a handful of companies that can buy $NVDA GPUs at the scale that the Mag 7 can. Meta is one of those companies.
Jensen’s “$500B in 5 quarters” statement two days ago is largely fueled by companies like Meta that need to continue spending. $GOOGL and $MSFT also increased their capex guidance.
So if the argument is $META is down because of being aggressive on capex for 2026, why is Nvidia holding $5T? They both should be symbiotic with each other: one providing the other’s revenue today while the other providing the other’s future AI ROI tomorrow.
The tax charge is a nothing burger. Companies have to pay their taxes. Revenue growth was 26%…every other core metric is up including ad impressions (14%) and price per ad (10%).
So the street is upset that they are going to spend more?
Now, the $25B bond raise this morning I think is the actual issue as investors are concerned that the company is continuing to fuel its capex financing via debt…which signals to me investors are more scared about no AI ROI. That’s a fair concern…just not something that can be the biggest concern if the company supplying the chips for all that ROI is hitting ATHs but the customer buying it is getting punished for it.
I bought a little at $659…2026 estimates looking like $META is now in the low 20s…will do more DD but not fully sold on actually establishing a position like I am on $AMZN (have been adding there aggressively over the past month) but a bit confused why the street is that upset about capex.
Been trading for 7 years — I’ve seen and tried every strategy you can name. Nothing truly clicked until I found The Strat. That’s when I finally had the confidence to say, “yeah, this can really work.”
I went all-in $BZAI at $4. I have this going to $8, as well as MANY other stock analysts. This company has their fingers in a lot of 🔥 stuff. You should study up on them.
Appreciate that, i really like this multi-time frame approach being able to see patterns forming on different time frames & extending levels down to lower time frame to be able to see the big picture.
One of my favorites to view this way is $RIVN right now