Meta’s Bold AI Bet Fuels Record Share Price Surge

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Meta Platforms has delivered a powerful one-two punch to the market: financial results that handily beat expectations, coupled with a staggering commitment to future investment. In a departure from typical Wall Street jitters over soaring cost projections, investors are enthusiastically backing the company's aggressive push to build out its artificial intelligence infrastructure. This confidence has propelled the social media giant's shares to a fresh peak.

The company's fourth-quarter 2025 earnings report showcased robust growth. Revenue climbed 24% to reach $59.9 billion, with earnings per share coming in at $8.88, surpassing consensus estimates. The core advertising business was a primary engine, demonstrating strength on two fronts: the volume of ads delivered increased by 18%, while the average price per ad rose 6%. User growth remains steady, with 3.58 billion people now using one of Meta's family of apps daily.

Unprecedented Capital Commitment to AI

The most significant long-term signal from the announcement is Meta's investment roadmap. Management guided for capital expenditures (capex) in the range of $115 to $135 billion for 2026. This represents a massive increase, averaging approximately 73% over the $72.2 billion spent in 2025.

These funds are earmarked primarily for "Meta Superintelligence Labs" and the underlying technical architecture. Company leadership expressed conviction that these AI investments will generate significant returns through enhanced advertising tools and new product offerings. Market observers interpret this move as a clear statement of intent to vigorously defend and expand Meta's position in the intensifying AI race.

Shares Reach New Heights

The market's response to the dual narrative of solid current growth and an ambitious future strategy has been unequivocally positive. Meta's stock hit a new 52-week high of $723.76. Even a quarterly loss of roughly $6 billion from the Metaverse-focused Reality Labs division failed to dampen sentiment, as CFO Susan Li indicated that costs in this segment were expected to stabilize around current levels.

Forward-Looking Guidance Remains Strong

Meta provided an optimistic outlook for the start of 2026. First-quarter revenue is projected to be between $53.5 billion and $56.5 billion, which would equate to growth of about 30% and again top analyst forecasts. Despite the ballooning infrastructure spend, the company plans to increase its full-year 2026 operating profit, suggesting disciplined cost management across the rest of its business operations.