{"id":674370,"date":"2026-07-05T02:27:25","date_gmt":"2026-07-05T02:27:25","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/674370\/"},"modified":"2026-07-05T02:27:25","modified_gmt":"2026-07-05T02:27:25","slug":"metas-ai-plans-just-sent-the-stock-market-a-145bn-message-and-investors-should-read-it-twice","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/674370\/","title":{"rendered":"Meta’s AI plans just sent the stock market a $145bn message \u2014 and investors should read it twice"},"content":{"rendered":"

\"Asian<\/p>\n

Image source: Getty Images<\/p>\n

The stock market has a habit of celebrating news it should probably be squinting at. And Meta Platforms (NASDAQ: META<\/a>) jumping 9% this week on plans to sell its excess AI computing capacity is a fine example.\u00a0<\/p>\n

Should you buy Meta Platforms shares today?\t<\/p>\n

Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from US tariffs to global conflicts, Mark Rogers and his team believe many UK shares still trade at substantial discounts, offering savvy investors plenty of potential opportunities to learn about.<\/p>\n

That\u2019s why this could be an ideal time to secure this valuable research \u2013 Mark\u2019s analysts have scoured the markets to reveal 5 of his favourite long-term \u2018Buys\u2019. Please, don\u2019t make any big decisions before seeing them.<\/p>\n

In a week when World Cup organisers discovered what happens when demand meets a heatwave, Meta has quietly admitted $125bn-$145bn for 2026 might be more computing power than it needs.<\/p>\n

What\u2019s the news?<\/p>\n

The positive view is that \u2018Meta Compute\u2019 is a shrewd new cloud business to rival Amazon\u2019s AWS and Microsoft\u2019s Azure. The less polite one is that Meta has overspent again.\u00a0<\/p>\n

When a firm commits $600bn to US infrastructure through 2028 and then starts renting out excess capacity, the question becomes whether compute demand is sustainable. And that\u2019s a huge question in today\u2019s stock market<\/a>.<\/p>\n

The market has already hinted at an answer. Data centre names have been sliding for weeks, and Meta\u2019s announcement accelerated things. CoreWeave fell 13.9% in a day and sits 38% below its May high, while Nebius dropped 17%. Awkwardly, both count Meta as a flagship customer.<\/p>\n

CoreWeave has a $21bn commitment from the company, Nebius up to $27bn. A landlord whose biggest tenant starts subletting should worry.<\/p>\n

Investors are watching the details<\/p>\n

American investor Michael Burry has been sceptical of the data centre boom. His charge is that hyperscalers are inflating earnings by extending chip depreciation schedules<\/a> in an unjustified way.\u00a0<\/p>\n

His estimate: a collective $176bn understatement of depreciation between 2026 and 2028, with Meta\u2019s earnings overstated by 20.8% by 2028. And it\u2019s not just Meta \u2013 similar points are true of Amazon and Microsoft.<\/p>\n

Is Burry right? The counterargument is that older chips are holding their value better than before, as evidenced by higher rental prices:<\/p>\n

H100 rental prices have risen roughly 40% since October 2025, from about $1.70 to $2.35 an hour \u2014 the opposite of depreciation.<\/p>\n

Memory prices have gone parabolic, with DDR5 contract prices tracking towards 5x year-on-year increases.<\/p>\n

The trouble is that this effect can also happen in reverse. If compute demand falls, older chip prices fall, depreciation schedules suddenly look generous, and those flattered earnings deflate.<\/p>\n

Extended depreciation schedules mean the stakes are high precisely because the accounting only works while the party continues. And Meta might be the first sign that it isn\u2019t going to last forever.<\/p>\n

A crash warning?<\/p>\n

Meta\u2019s view for some time has been that the risk of underinvestment is greater than the risk of overinvestment. So the latest news shouldn\u2019t be a huge surprise.<\/p>\n

It\u2019s also worth noting that it has had some genuine success with its products. Over 4m advertisers now use its AI tools and its AI agents are showing real signs of progress.\u00a0<\/p>\n

The latest news doesn\u2019t mean a crash is coming. But it\u2019s a reminder to be wary of stocks priced as though the good times last forever.<\/p>\n

Meta isn\u2019t on my Buy list right now \u2013 I\u2019m focusing on other opportunities. And in most cases, those are businesses that don\u2019t need an adjusted depreciation schedule for the numbers to stack up.<\/p>\n

Should you invest \u00a35,000 in Meta Platforms right now?<\/p>\n

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.<\/p>\n

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Meta Platforms made the list?<\/p>\n

Stephen Wright owns shares in Amazon and Microsoft.<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images The stock market has a habit of celebrating news it should probably be squinting…\n","protected":false},"author":2,"featured_media":674371,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":["post-674370","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/674370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=674370"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/674370\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/674371"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=674370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=674370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=674370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}