Why I hate Meta's latest quarter

Meta reported a strong Q1 — revenue +33% YoY to $56.3B and net income up over 60% to $26.8B — and provided Q2 revenue guidance of $58–$61B. However, management declined to give specific 2027 capex guidance, signaling open-ended, flexible AI infrastructure spending. The lack of clarity on future capital intensity and margins rattled investors; Meta shares fell about 9% early after the print while Alphabet’s clearer capex guidance helped its stock outperform. Analysts praised core ad growth but flagged uncertainty around AI-related spending as a key risk to cash flow and valuation. Overall, strong near-term results were outweighed by longer-term margin/capex concerns, producing a negative market reaction.