Luca Mazza
Italy
28d
📉 Let’s take a look at the situation with Meta (META) In the past few days, the stock has taken a noticeable hit — about -16% from its highs — and, as always, there’s a reason behind every market move. This time, it’s mainly about rising expenses and Meta’s updated guidance for 2026, which caught investors off guard. Zuckerberg actually delivered very strong Q3 2025 results — revenue up 26% YoY, totaling over $51 billion, with solid margins. But what worried the market was what came next: Meta announced that its capital expenditures (CapEx) will rise to $70 – 72 billion in 2025, with even higher levels expected in 2026. 💬 In short: massive investments in AI and data-center infrastructure — but in the short term, this means higher costs and lower free cash flow. The result? An immediate correction. Investors reacted not to current numbers (which remain strong), but to future risk perception: tighter margins, delayed returns, and a longer investment cycle. 🧠 The truth is that Meta is in a structural transition phase — from a social-media giant to an AI-infrastructure company. Over the past months, it launched Llama 3, rolled out Meta AI across Facebook, Instagram, WhatsApp, and Threads, and signed a $10 billion+ partnership with Google Cloud to expand its data-center capacity. Meanwhile, the fundamentals remain massive: 3.54 billion daily active users, a dominant position in digital advertising, and huge monetization potential for the future. 💥 However, today’s market is far more selective. After two years of AI euphoria, investors now want real results, not just vision. And Meta is still in the building phase. Adding pressure, the European Commission opened a formal investigation into Meta’s handling of illegal content, with potential fines of up to 6% of EU revenue, alongside reputational issues from scam ads circulating on its platforms. 🌍 These factors pushed many funds to take profits after an incredible rally — remember, Meta had gained over +200% since its 2022 lows. A pullback, in this context, was almost inevitable. 📊 Today the stock trades around $619, with a P/E of 31.5 and a market capitalization above $1.84 trillion. Analysts are split: some maintain target prices between $825 – $880, while others prefer to wait for clearer proof of AI monetization. 🎯 Personally, I’m already invested in Meta, with a target price set at $800. After this correction, it’s clear that such a goal is now more long-term-oriented, rather than short-term as it seemed months ago. Still, my thesis remains intact: Meta is one of the most solid and innovative tech companies in the world, with enormous potential in AI, advertising, and digital infrastructure. 💬 As always, my portfolio is well diversified — not just Meta, but a balanced mix of tech, energy, crypto, and defensive ETFs. ➡️ If you’d like to see how I manage my exposure and copy my portfolio directly, you can do so on my eToro profile: all my positions and allocations are updated in real time. 📈 “Markets punish short-term uncertainty but reward long-term vision.” 👇 What do you think about Meta’s current phase — is it a buying opportunity or just a temporary liquidity trap? 💲$META (Meta Platforms Inc), 💲$TSLA (Tesla Motors, Inc.), 💲$AAPL (Apple), 💲$NVDA (NVIDIA Corporation), 💲$BTC
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