Meta Platforms: AI Return on Invested Capital Is Uncertain (NASDAQ:META)
The social media giant's dominant position in its space doesn't prevent investors from being concerned about its AI spending spree.
Overview
Meta Platforms (NASDAQ: META) is a $1.7 trillion company. Its family of apps counts 3.56 billion daily active users. And it arguably benefits from the most powerful network effects on the face of the planet. All signs point to it being an elite business.
However, there are deep questions about how it will fare in the coming years. That's because it's also a hyperscaler, and forecasts it will spend $125 billion to $145 billion on AI data center capital expenditures in 2026 alone. Analysts expect even bigger outlays from it in 2027.
Details
But whether there will be a profitable payoff on these colossal expenditures is a huge point of uncertainty.
Source
Originally published at www.fool.com.