Dan Gallagher

The business is still strong.

It's like they showed a similar acceleration in their business and they put out a big CapEx number, but in the market reaction afterwards, everyone's kind of more keen on the CapEx number.

The other difference between the two is Metastock was way down before their earnings report because there was some other concerns about them and Google's has been up a lot.

And then you've had this week kind of this general over

all worry about AI disruption, what AI could do to all these traditional tech companies, and that feeds into it as well.

Thank you for having me.

In this case, I boil it down to simplicity versus complexity.

Meta, 98% of their business is advertising.

They've been able to use AI in ways to improve that, drive more engagement, better targeting, and so forth.

And that's showing up in their growth.

And they projected a really strong, essentially, growth acceleration for the first quarter, which kind of sold the message that AI is actually helping them.

And it gave them essentially a pass on what's been this spending.

All of the big companies have been spending a ton on AI.

Meta is spending the most relative to its revenue, and it's going to spend even more.

Like this year is probably going to spend more than half of its revenue on CapEx, which is an obscene amount.

for these companies.

But the stock is up because investors think AI is actually paying off for them.

Microsoft has this like more complex business model where they do software for large corporate customers, for consumers.

There's these mix of like cloud contracts.

They even sell things like Xbox that's in that mix too.