From 24/7 Wall St. · Alex Sirois · · 1m
Meta's AI Push Drives Investor Confidence
Investor keeps buying Meta despite AI costs as ad engine grows
In brief
Investor keeps buying Meta despite AI costs as ad engine grows Meta's ad business continues compounding while AI investments fund future growth Originally reported by 24/7 Wall St..
Why I keep buying Meta
The $784 million Q2 2026 free cash flow didn't scare me despite market reactions
Ad Engine Still Compounding
Q2 revenue hit $60.8 billion with 27.96% year over year growth and 14% ad impressions increase
Strong Financials
Meta runs 82% gross margin and 30.24% return on equity with a solid balance sheet
AI Investment Risk
Reality Labs lost $19.2 billion in 2025 with Q1 2026 operating loss of $4.03 billion
Why Meta Over Alphabet
Meta's 30.24% ROE beats Alphabet's 35.7% despite Alphabet's cheaper valuation and higher growth
The Math Behind It
Family of Apps cash flow of $115.8 billion funds the AI experiment with Zuckerberg controlling the outcome
The headline
Meta's ad business continues compounding while AI investments fund future growth
