Kurt Wagner

The Q1 projections were a beat.

The real maybe surprising thing was just how high the capital expenditures are supposed to be in 2026.

I think the estimate was around $111 billion.

Meta's forecasting between $115 and $135 billion today.

But again, if you are a believer in this sort of AI world that we're living in right now, that's an exciting thing.

I mean, this is a company that is going absolutely full steam ahead into AI.

And I think those numbers reflect that.

How about just last quarter?

quarter.

This is exactly what we talked about in Q3.

They didn't have these specific numbers, but they basically said, hey, our CapEx is going to increase meaningfully in 2026.

The stock went down 14%.

Everyone was very concerned with this added spending.

And yet today, when the numbers come out and they're higher than estimates, estimates is presumably built in that commentary from last quarter.

It doesn't seem to be as much of a problem.

My guess is that they are seeing

You know, this Q1 revenue, for example, which is going to come in two, three, four billion dollars higher than expected.

They're just seeing this ads business that is completely churning money out.

And so if you feel that you have the money coming in, maybe you stomach those higher numbers than you would have expected.

Yeah.