Veteran tech strategist Dan Ives believes that investors unloading Meta stock are making a big mistake.
The Wedbush global head of tech research says on X Meta has given investors a bullish signal in its latest earnings call after lifting its 2025 capital expenditure from $66 to $72 billion to $70 to $72 billion.
According to Ives, the CapEx jump suggests that the AI investment cycle is still going strong.
“We want Meta to increase CapEx, and they did. Any sell-off is shortsighted. Zuck is a wartime CEO and is leading Meta into the next stage of the AI Revolution. Increase in CapEx gonna happen across tech and bullish for Nvidia, AMD, and cloud players. This is the fuel for the AI Revolution.”
Ives notes that investors who are too concerned about other financial metrics like free cash flows (FCF) will likely miss the AI train.
“This is a CapEx supercycle for tech fueling the AI Revolution. If you are focused on what this does to FCF and earnings, you are missing the big picture. Year 3 of an 8-10 year AI buildout. A true 4th Industrial Revolution, but the bears in hibernation mode in their caves will miss it.”
Ives’ comments come following Meta’s Q3 2025 earnings release. The social media giant reports $51.2 billion in Q3 sales, above Wall Street expectations of $49.4 billion. Its earnings per share (EPS) of $1.05 is well below forecasts of $6.67, but the company notes that the underperformance is due to a $15.93 billion one-time tax charge.
“Excluding this one-time tax charge… diluted EPS would have increased by $6.20 to $7.25, compared to the reported diluted EPS of $1.05.”
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