Meta Q1: AI Ad Thesis Getting Stronger

The author reiterates a Strong Buy on Meta Platforms (META.OQ) ahead of its Q1 2026 earnings (due April 29), arguing Meta is the hyperscaler best positioned to capture AI-driven non-cloud revenue upside. Q1 guidance of $53.5B–$56.5B topped Street consensus of $51.27B, prompting higher revenue estimates after Q4. The author expects another potential beat-and-raise for Q2 but warns FY26 guidance ($115B–$135B) implies higher depreciation and infrastructure costs that could pressure earnings starting in Q2 if CapEx guidance rises. Overall, the view is bullish: the stock could retest new highs within nine months, though investors should monitor FY26 CapEx and margin impacts.