Meta Q1: Thanks For The Dip, I'm Buying More

Meta reported strong Q1 results with 33% YoY revenue growth driven by robust ad momentum (19% ad impressions, 12% price-per-ad). Reported EPS was boosted by a one-time ~$8B tax benefit, masking some near-term free-cash-flow concerns after management raised 2026 capex guidance to $125–$145B to support AI and platform investments. The guidance and higher capex have raised short-term investor worry, but the author maintains a Buy stance, citing attractive valuation (~18x operating income, ~17x 2027E P/E), resilient user engagement, and significant optionality from AI initiatives. Overall market impact: strong top-line and ad metrics support the stock’s growth narrative, while elevated capex tempers near-term cash-flow outlook and could increase volatility around the shares.