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▶ 0:24 · Digital Advertising · Meta's ad business remains structurally healthy despite growth deceleration
episode briefing
The Information

Why Meta Will Burn Cash Until 2028

2026-07-30 · 1 company · 3 thematic
sentiment
1 bull0 bear0 neu
speakers
ron jose

Sell-side analyst covering internet sector at Citi; provides detailed financial modeling and product-level analysis of Meta's AI strategy, capex trajectory, and new product pipeline.

now playing · Digital Advertising
Digital Advertisingtailwindscore 7/10ron jose
Meta's ad business remains structurally healthy despite growth deceleration
28% revenue growth at massive scale with 30%+ US growth and double-digit engagement gains on Instagram/Facebook shows AI-driven ranking improvements are sustaining demand; Europe DMA rules…
AI Applicationstailwindscore 7/10ron jose
Meta's enterprise AI strategy could unlock coding tools and API revenue
Management signaled enterprise focus with internal coding tools potentially offered externally via API; if Meta's frontier models become state-of-the-art, excess compute capacity could be s…
AI Infrastructureheadwindscore 8/10ron jose
Meta's AI capex to drive negative free cash flow through 2028
Citi's model projects Meta burning cash for the next 3+ years as hundreds of billions in compute infrastructure spending outpaces near-term AI revenue; the investment thesis depends on new…