Meta invests billions in AI – is the big comeback coming?

Meta invests billions in AI – is the big comeback coming?

Meta Platforms, Inc. has announced that it is investing full power in the development of artificial intelligence (AI) to position itself as a leading player in this field for the coming decade. These measures include massive investments expected to reach between $60 billion and $65 billion in cost of capital (capex) by 2025, with AI development costs accounting for the largest portion of this increase. Meta's total spending for 2025 is estimated at $113 billion to $118 billion, clearly indicating the company's growth-oriented commitment to AI, which is seen as a potential "game-changer," as boerse-express.com reported.

The strategic investments are aimed at competing with established competitors such as OpenAI, Google and xAI. Meta plans to increase spending on AI infrastructure by billions more. In addition, a standalone AI app will be launched in the US, showcasing the company's innovation efforts.

Strong interest from institutional investors

The ongoing investments and the positive business development are arousing the interest of institutional investors. Wright Investors Service Inc. increased its stake by 3.9%, while Abner Herrman & Brock LLC even gained a stake of 79.4%. Additionally, wealth managers such as WealthTrak Capital Management LLC and Marshall & Sterling Wealth Advisors Inc. purchased new shares in the fourth quarter of last year.

Meta is also doing well financially. In the first quarter of 2025, sales of $42.31 billion and earnings per share (EPS) of $6.43 were achieved. These figures exceed the expectations of analysts, who on average expected sales of $41.4 billion. This corresponds to an increase of 16% compared to the previous year.

Forecasts and future expectations

For the second quarter of 2025, Meta expects total sales of between 42.5 and 45.5 billion US dollars, based on market signs. Investors can also look forward to the announcement of a quarterly cash dividend. Still, Meta's share price is currently around 19% below its 52-week high, highlighting the challenges associated with the large initial investments in AI.

In summary, Meta is on a solid growth path, but needs to balance the long-term potential of its AI initiatives against the high upfront investments. While the financial results are encouraging, it remains to be seen how markets will respond to the deep investments. Loud deraktionaer.de Investors should expect a clear positive signal before investing in meta stocks again. Developments in the AI ​​sector will have a decisive influence on future decisions.