The Blog

Tech Titans CAPEX Edition

 

The big shocker: Meta’s guidance to continue to spend more than any company in the history of companies on an uncertain future in the form of CAPEX.


CAPEX edition. What is Capex? Capital Expenditures are for investments meant to be used for an extended time greater than one year. Meta seems to think it should spend more money than any other company in the history of time on CAPEX, while they underperform on all counts vs. Apple, Microsoft, Google/Alphabet, and Amazon.

 

Number range of the day: $34-$39 billion in capital expenditures or #capex

An important number range to sit on for a bit. In this decade of action. When wondering about our future and alternative futures and who gets to decide who gets access to the resources we need to make critical transitions.

This is what Facebook/Meta plans to spend this year, mainly on AI, Data Center, and Network capacity in 2022.

“Early in the journey” to generate significant revenue and engagement gains in Reels and discovery, which Meta/Facebook keeps making, now with 3.71 BN humans visiting per month.

The news will tell you that the company bombed, missed expectations, and pissed off investors. Amidst all of that, while revenues were down and profits were down, the company set aside $34-$39 billion in what is increasingly seen as a highly capital-intensive business.

So software eats the world only to have the world demand more resources from Meta.