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- [00:00]
Mark Zuckerberg
Meta 60 billion dollar investment. Mark Zuckerberg is committed to Meta infrastructure. Over the next few years Meta stock rallied. They doubled their capex spending in their stock rallied. Yes, well Friday, Friday and today as well as you said, all this is counter to what most people would have probably expected if you double capex spending. But why is META stock at all time highs?
- [00:36]
Analyst 1
I mean combination of things, incredibly well run company since 2022 and this the thing when everyone was messaging me about Deep Seek I'm like okay, you take Nvidia, Microsoft, Apple and Meta who have the greatest compute power in the history of the world and you think they missed with that algorithm and the real quants that they have in there what the capex is worth. Like here's an investment secret. Most people who put money out are looking to get 10x back. So with them spending this, it's the race of who is going to. It's a race of capital because if they don't put the money out you can be a laggard and end up falling behind like a salesforce like AMD did, etc. I think it's a great spin but people, I mean it's the number one media company in the world. I think they have more watch time than any other network. Whether it's linear or digital. Profit margins are looking better than ever and they're investing into the Future. So in 22 I was very critical but you have to give them credit for taking the money out of the Metaverse and put it into a real physical infrastructure to have elite there. Like I know that season he messed up and man, he's been on fire ever since. He's been doing Brazilian Jiu jitsu. He seemed to have some, you know, added vigor after being at the inauguration. I got a little motivation, you know what I mean? So it's not, he's not talked about in the same breath of Steve Jobs and Tim Cook and Bezos, but this time we start having that conversation about the turnaround he did since 2022 and it's one of the greatest comebacks ever.
- [02:21]
Analyst 2
It's been a miraculous comeback. At that time he had just announced that he was going to spend 50 billion over the next five years inside the Metaverse. We kind of swept that under the rug, went in front of Congress, we forgave him. And now Meta has just been on a tier. The 60 billion dollar investment obviously is built around AI data centers being one of the main focal points and the global footprint. And we spoke about this over the past couple of weeks. They're on pace to do that based on all the innovation. But here's the interesting part and that's why I think I almost called it deep fake. But the deep sea, the DC thing is it's interesting. Right. When you look at its competitors inside the Max 7 space, Amazon has committed to spending over 75 billion. Last year they spent 75. They've committed that their capex is going to be higher than 75 billion in 2025. Microsoft just said that they're planning to invest about 80 billion in the, in the 2025 fiscal year. So they're actually spending less than some of the other Max sevens. Why are they spending less? Because a lot of their infrastructure is in house and we kind of went over this shout out to everybody. I was in the class on Thursday. But Meta has built things in house. Right? A lot of the infrastructure is in house and they're doing their thing. So that spend is not going to be as vital or as much as robust. I'm sorry as other companies. But there are some companies that they need to build out infrastructure and we kind of went over that as well. But they're right in line with what Max7 is doing. Again, when you think about what's happened since the last time we were here, $500 billion invested in OpenAI. Obviously Oracle and SoftBank combined to create Stargate. 500 billion, right. Yes. We saw the president talk about getting money from the Saudis up to a trillion trillion for infrastructure. We just talked about 65 billion for Meta, 80 billion for Microsoft, 80 plus for Amazon. And then there's a company that says we did it for 5 million cap assistant. I mean it's interesting like you think.
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Analyst 1
All of these companies with all of this great executive leadership and once again they got, they have the model you think all of them misprice what the costs are like, come on. And this is a startup. The Chinese stock market has been gridlocked since 2021. Let's take it to their country. You think Alibaba 10 cent, all those great companies that are there miss this build?
- [04:58]
Analyst 2
Yeah.
- [04:58]
Analyst 1
So six million dollar bill like, well, this is a startup. Let's be real. They, they just, they lie. What Flex said you lied.
- [05:06]
Analyst 2
Or, or so I, I got trust issues with China stocks as well. Document. It's well documented. I have even more trust when it comes to numbers that come out of China because that story's been well documented as well in 2020. Luke and coffee go do the history on that. But did they lie? We'll see. Time will tell. That. But have they cracked the code on efficiency? Now, that could be something we can open the door with, right? Like maybe we don't have open source. Open source, the amount of spend for computer, maybe the amount that has to be spent isn't as much. But money needs to be spent. And I don't think there's no, I mean, anybody in the tech space is looking at that and saying this is impossible.
- [05:54]
Mark Zuckerberg
Regardless of whether it's real or not, it definitely had a real impact on the market for sure.
- [05:59]
Political Commentator
Thanks to tax reform, American businesses have opened doors across our communities, investing in manufacturing workers and equipment, spurring millions of new jobs with higher wages and better training, and setting a new record high in corporate taxes paid to the US Government. America's businesses open doors, tell Congress to keep the door of opportunity open, protect and strengthen tax reform paid for by Business Roundtable.