$META · Jose Najarro Stocks · 2026-10-27

We got so many updates on investments happening in the AI world from Meta, from Oracle, from Nvidia, from AMD. We had Meta report earnings.

I think it's looking at Meta wrong. Meta may do two 300 billion next year.

do I care if Zuck spends $300 billion next year? Nope. Nope. Reason I got a backwards hat tonight is I'm in rare form. I do not care. And I do not care because over the past 20 some odd quarters, since 2016 or whatever it is, however many quarters it is, they've done $291 billion in free cash flow.

They're pretty good at generating cash from ops and free cash flow. And if they need to deploy capital to fortify their moat and build out the new profit streams, I'm ready for it.

Even if the market makes it go sideways for a little bit, that's okay. This is a long-term game. And you know what? Maybe Meta and these companies, maybe they get put in the penalty box for another year.

But do we really think that over the next 5 years they're going to underperform the S&P? My money is on Oh, hell no.

What what are your thoughts here of Meta kind of raising um the 25 billion? I think they was it was increased to 25 billion. Um yeah, because 6x overs subscribed, right?

Little homework assignment. Little company called Meta. Oh, what are we worried about? a company like this being able to generate oh I don't know Jose $617 billion dollar in operating cash flow since Q4 2016 that looks like a CEO that knows what he's doing right

Even with capex going crazy to the downtrend. Okay. 319 billion has been deployed since Q4 2016. Oh, you're telling me that we're going to sweat a couple of years of increased capex?

I mean, look at this trend line here. Okay, we're gonna do two trend lines. We basically had capex not going past 10 billion a quarter pretty much until Q1 2025 and look what Cashmops did.

Now, we do have the new numbers and I have not looked at it yet. So, it's no longer 291. But if we just look at free cash flow, $297 billion since Q4 2016. And people want to freak out because they have one negative quarter free cash flow.

These people are not real investors. These people have no bullish genes in their body. They hate Zuck. Listen, if you don't think that he's correct, if you don't like his vision, sell, please. Sell. I'll buy our shares. Sell.

Last quarter before this recent earnings, everybody was wondering what Mark was going to do with all this AI infrastructure that they're building now. Even though Meta does a great job at explaining, hey look, our compute is helping our core business dramatically.

They give you kind of all these numbers of it's helping our ad impressions, is helping our ad efficiencies, um it's helping obviously we see the revenue number. And then he even went on to say, we don't actually don't even want to sell compute.

I'm paraphrasing here because we believe selling intelligence is so much better. We already know from SpaceX that selling compute is a very great business, a really great business.

Mark doesn't want to do that because he believes his intelligence or from Muse and all these Muse models is going to be able to generate real revenue for them and real numbers.

And now that Meta is kicking butt here, I I I personally haven't used Muse. I'm still stuck with uh OpenAI, but the numbers are insane. the the things people are creating with Muse.

And now you get to see that picture of what Mark was talking about, the actual ability to be able to sell intelligence. I think the numbers that we're going to start to get there are are going to be insane pretty soon.

And also, I think the markets like you're spending all this capex. Why isn't your revenue even though you're growing what 26% year-over-year? Why isn't it faster? It takes some time for these data centers to build be built up, right?

It's not like all the capex is being spent right now and you should expect it right now. I think I four quarters from now, a lot of these revenue growths, a lot of these trend lines are going to be a lot stronger than what the market is is impact is forecasting right now.

I don't know that they're going to let Zuck steal the thunder.

if if they do do this right Steve do you think Meta and all these players are just going to stand still and say you know what I'll let you spend $400 billion I'm not going to spend anything.

I don't think that's the case, right? Mark is not going to let that.

Or let me or maybe a memory play. Maybe I would go with the memory play. Think no. I would go with um I think Meta. I think Meta would be my Mac 7.

And then I want to go with the Zuck. I really do. But it's so hard because I also think Amazon is being left in the wind and it's a toss up. But I'm going to roll with the Zuck because I'll back the Zuck night and day.