Meta hits record high as Zuckerberg outpaces tech rivals
Meta Platforms shares rose a record 11% in extended trading on a strong return on investment in AI, which has revitalized its core advertising business. The impressive financial performance could be a game-changer for the company in its fight for leadership in the AI industry, according to the analysts.
According to Reuters, Meta updated the forecast for capital expenditures, raising the lower limit by USD 2 billion, up to USD 66-72 billion for the year. Such a step indicates the company's intention to intensively develop the infrastructure for the maintenance of AI solutions, which should support its digital platforms, Facebook and Instagram.
AI-powered advertising has boosted Meta's share price
Meta CEO Mark Zuckerberg emphasized that AI opens up new opportunities for business, especially in the advertising sector.
"AI is allowing us to make big leaps in businesses that make money from selling ads on Facebook and Instagram," he said during his conversation with analysts.
Advertisers have received more precise tools for interacting with their audience, which is immediately reflected in revenue growth.
The company's forecast for the third quarter of 2025 is revenue in the range of USD 47.5-50.5 billion, which significantly exceeds analysts' expectations (USD 46.15 billion). Meta also pointed to a 1% benefit from the weakening USD, but noted that growth rates in the fourth quarter may be lower.
AI capital spending will continue to grow
Meta has warned that 2026 will be a year of even higher costs than 2025. The company is investing in building new data centers, attracting top talent, and upgrading its systems. Salaries for key AI researchers have already increased significantly, and the job market is increasingly resembling an arms race.
Meta is also competing for engineering resources with Microsoft and Alphabet, competitors that are actively increasing their own investments in AI. In particular, Microsoft plans to spend more than USD 30 billion in the first fiscal quarter (versus the expected USD 23.75 billion), and Alphabet has increased capital expenditures to USD 85 billion.
Who does Meta compete with in the field of AI?
Meta's success doesn't happen in a vacuum. The entire tech industry today revolves around AI. Microsoft, which works closely with OpenAI, is actively expanding its cloud infrastructure to serve the growing demand for AI services. Alphabet, in turn, is focusing on its own language models and services for businesses.
In this fight, Meta has decided to bet on deep integration of AI precisely into advertising products that directly generate revenue. This allows it to show results faster than other players, who spend money mainly on research and development.
"Meta's exorbitant spending on its AI visions will continue to draw questions and scrutiny from investors who are eager to see returns," Emarketer analyst Minda Smiley warns.
Investors supported Meta's strategy
Despite the rapid increase in costs, the market has responded positively to the company's plans. Meta shares have risen by almost 20% since the start of 2025. In particular, the after-market increase on Wednesday, along with Microsoft shares, added about half a trillion USD to the combined market capitalization.
It shows confidence in Zuckerberg's long-term strategy, which is based on the hypothesis of creating a superintelligence — AI capable of surpassing human intelligence in all areas. Despite the skepticism of some investors, this narrative remains a powerful driver of Meta's share price.
Will Meta be able to maintain its leadership in 2026?
Meta faces many challenges ahead. Increasing spending requires clear evidence of the effectiveness of each new product. Investors expect steady revenue growth, not just big promises. Competition will not abate: Microsoft, Google, and even smaller players will continue to invest aggressively.
However, if Meta manages to realize its plans, the company could become not just an advertising giant but a technology leader of a new era. It all depends on the team's ability to quickly transform innovations into profitable services.
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