Market May Be OK With Meta's Spending, Neuberger's Flax Says

Watch Market May Be OK With Meta's Spending, Neuberger's Flax Says - Bloomberg on Dailymotion

Transcript

00:00We heard, of course, in the press release that they expect the dollar value spent in 2026 to be

00:05far ahead of that of what we saw in 2025, which has already been amazing. I mean,

00:10I think back to some past problems that Meta has had when it invested aggressively

00:14in the metaverse, which we don't talk about anymore. Then we have the year of efficiency.

00:19And now here we are again, spending hundreds of billions of dollars for this build out.

00:23Investors seem to be on board so far, but what point does it just get too much?

00:30I think what's going to matter is whether the company can continue to execute on its core

00:35digital advertising business. Reality Labs, where they're losing a lot of money,

00:39they could certainly make adjustments there if needed. But I think the market will be comfortable

00:45with this level of spending, assuming that they can transition their business, the users,

00:50the advertisers into this next generation of experiences. If they're able to add value,

00:56I think the market will be comfortable with the spending. Now, to be clear, every single quarter

01:01these companies need to execute and hit their numbers. And the market, as we know, can be very

01:06unforgiving. But if they're able, in the case of Meta, to lay out this trajectory of innovation

01:12on the product roadmap, change the experiences, I think the market will be okay with that.