I remember people being skeptical when Meta was hitting its lows at $88 less than 2y ago... back then it was also due to increased CAPEX along with the spend in VR. The CAPEX from that time was supposed to improve Instagram Reels, but because they bought twice the capacity needed... they were able to capitalize on the opportunities with gen-AI and ended up training a state-of-the art LLM (Llama, now on its third version). Source: https://www.dwarkeshpatel.com/p/mark-zuckerberg
The thing is, they have the best people in the world working on and researching AI. Their CAPEX in the past and investment decisions have in general worked out. But still "investors" in Meta seem so fickle as to sell off close to 20% post earnings.
Oh well, their fear & short-termism is my opportunity. I picked up another 100 shares at an average price of $409 in the after hour.
I remember people being skeptical when Meta was hitting its lows at $88 less than 2y ago... back then it was also due to increased CAPEX along with the spend in VR. The CAPEX from that time was supposed to improve Instagram Reels, but because they bought twice the capacity needed... they were able to capitalize on the opportunities with gen-AI and ended up training a state-of-the art LLM (Llama, now on its third version). Source: https://www.dwarkeshpatel.com/p/mark-zuckerberg
The thing is, they have the best people in the world working on and researching AI. Their CAPEX in the past and investment decisions have in general worked out. But still "investors" in Meta seem so fickle as to sell off close to 20% post earnings.
Oh well, their fear & short-termism is my opportunity. I picked up another 100 shares at an average price of $409 in the after hour.