Well, well, well. Look who finally learned how to spend billions without making shareholders want to hide under their desks. Meta just dropped their Q4 earnings, and for once, Mark Zuckerberg’s massive spending spree might actually make sense.
Remember when Zuck decided we all needed to live in a cartoon world where our avatars had no legs? That little experiment has cost them about $80 billion so far. But plot twist: their new AI obsession is actually… working?
The Numbers Are Actually Good This Time
Meta crushed Q4 with $59.9 billion in revenue – that’s 24% higher than last year and way better than what Wall Street expected. Their earnings per share hit $8.88, beating estimates like they were playing whack-a-mole with analyst predictions.
But here’s the kicker: their AI investments are actually improving their core business. Ad impressions grew 18%, prices went up 6%, and AI-powered features boosted engagement by 7%. That’s not just burning money on cool tech demos – that’s tech that’s making them more money.
Meanwhile, Reality Labs (their VR division) is still bleeding cash like a punctured wallet. They lost over $6 billion in Q4 alone, with revenue dropping 12%. Since 2020, they’ve torched nearly $80 billion on the metaverse. That’s enough to buy Netflix and still have change left over for a nice dinner.
Learning From Very Expensive Mistakes
But here’s where it gets interesting: instead of doubling down on VR headsets that collect dust, Meta’s pivoting to smart glasses and wearables. Smart glasses sales tripled in 2025 – granted, tripling a small number is still a small number, but at least it’s going in the right direction.
They even laid off over 1,000 Reality Labs employees, which is corporate speak for “we’re moving money from the money pit to the money maker.”
AI: The Sequel That Doesn’t Suck
Now Meta wants to spend $115-135 billion on AI infrastructure in 2026. Before you panic, remember their advertising business is actually funding this expansion. They’re growing revenue 21% annually, outpacing Google and Amazon while trading at cheaper valuations.
The market loved it – Meta stock jumped 10% after earnings. Investors are finally seeing their massive tech spending improve the business instead of funding Zuckerberg’s sci-fi fever dreams.
The Reality Check
Meta’s sitting on $81.6 billion in cash, their ad engine is humming, and their AI investments are actually making their core products better. Unlike the metaverse bet, this spending is built on a profitable foundation that’s already showing results.
Sure, risks remain – regulators love targeting Big Tech, competition is brutal, and spending $135 billion on anything is inherently risky. But for the first time in years, Meta’s massive spending looks strategic rather than speculative.
For investors who can handle tech volatility, Meta’s looking attractive. Just don’t expect any legless avatars in your returns.