Operating income for 2026 is underwhelming indicating capex is starting to bite into op margin. 27 will be even worse as capex this year will almost double again. ROIC is getting worse not better. Probably no more stock buyback. A lot of the rev growth is empty calorie until AI infra costs get under control.
If Zuck says one person is able to what a whole team used to (thanks to the productivity enhancements) why is P&L costs increasing faster than revenue?
the spend on infrastructure is huge right now. the stock price will tolerate it if the top line is super strong but once that abates the questions re spend will come back
Operating income for 2026 is underwhelming indicating capex is starting to bite into op margin. 27 will be even worse as capex this year will almost double again. ROIC is getting worse not better. Probably no more stock buyback. A lot of the rev growth is empty calorie until AI infra costs get under control.
They talked about personnel costs as the 2nd biggest driver in cost increase. It costs a lot of money to hire/restructure its AI team.
That’s one of my main gripes also (the huge capex) Revenue acceleration is startling though and some evidence of AI benefit
If Zuck says one person is able to what a whole team used to (thanks to the productivity enhancements) why is P&L costs increasing faster than revenue?
the spend on infrastructure is huge right now. the stock price will tolerate it if the top line is super strong but once that abates the questions re spend will come back
Sorry I'm talking about spend P&L spend not infra/capex spend.
P&L opex spend is growing faster than revenue
What’s critical here is that we know depreciation is light and STILL expenses growing faster than revenue