Meta Earnings: AI Costs and Market Impact

Meta’s revenue jumps, but AI costs (and a $15.93B tax hit) spook investorsSummaryMeta ($META) posted record Q3 2025 revenue (up 26% Y/Y) but flagged even higher AI spending lifting 2025 capex to $70–$72B and signaling “significantly higher” in 2026. A one-time, non-cash $15.93B U.S. tax charge also hammered reported profit, knocking the stock after hours. Winners -AI chips & accelerated computeReason: Meta’s bigger 2025–2026 AI buildout implies sustained demand for GPUs/accelerators and AI servers. $NVDA (NVIDIA)$AMD (Advanced Micro Devices)$SMCI (Super Micro Computer)Colocation & data-center REITsReason: AI training/inference needs more racks, power and interconnects benefiting neutral colo providers. $EQIX (Equinix)$DLR (Digital Realty)High-speed networking & AI fabricsReason: Larger AI clusters require 400G/800G switches/optics and low-latency fabrics. $ANET (Arista Networks)$CSCO (Cisco)Losers -Social ad challengersReason: Meta’s AI-driven ad performance and scale can siphon budgets from smaller platforms. $SNAP (Snap)$PINS (Pinterest)“Story over profits” AI equitiesReason: Meta’s cost surge and investor focus on AI ROI can pressure richly valued, less-profitable AI names. $AI (C3.ai)$PATH (UiPath)Stand-alone VR/AR playsReason: Reality Labs’ ongoing heavy losses highlight slow monetisation across immersive hardware/software. $RBLX (Roblox)$VUZI (Vuzix)Trading takeMeta’s capex guide up to $70–$72B for 2025 and the signal of “significantly higher” in 2026 keep the AI-infra trade in play (chips, networking, colo). But the tax hit and rising opex re-ignite the “show me the profits” lens on AI-themed names. Watch follow-through in $NVDA/$AMD/$ANET/$EQIX and relative weakness in $SNAP/$PINS/$AI. #StockMarket #Trading #Investing #DayTrading #SwingTrading #META #AI #Earnings #Semiconductors #DataCenters #AdTech #Networking #Colocation #TechStocks

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