Kurt Wagner

That's because people are getting more granular, more targeted.

They're spending less to create some of this ad copy because AI can do it for them.

There's a bunch of ways that AI can truly improve the ads business.

It's not as sexy, right?

It's not as obvious maybe because a lot of it's happening incrementally behind the scenes.

That is a story and a narrative that this company needs to sell because if you're just simply saying, trust us, we're building a $50 billion data center in Louisiana, and you'll see the returns of that in seven years, that's a hard pitch.

But if you say, hey, look, check it out, the ads business is growing quarter after quarter because of these ad improvements, these AI improvements we're making, that's the narrative that they're going to want to sell to people today.

Yeah, I mean, it's pretty much all good news, especially if you believe in this AI vision that Mark Zuckerberg has.

The Q4 holiday quarter sales were a beat.

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.