{"id":594981,"date":"2026-07-20T11:56:16","date_gmt":"2026-07-20T11:56:16","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/594981\/"},"modified":"2026-07-20T11:56:16","modified_gmt":"2026-07-20T11:56:16","slug":"meta-platforms-looks-set-to-abandon-a-174-billion-investment-to-fuel-its-ai-ambitions","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/594981\/","title":{"rendered":"Meta Platforms Looks Set to Abandon a $174 Billion Investment to Fuel Its AI Ambitions"},"content":{"rendered":"\n

Since the 2022 bear market bottomed nearly four years ago, Wall Street’s historic rally has been driven by two catalysts: the evolution of artificial intelligence (AI) and the leadership of the “Magnificent Seven<\/a>.” <\/p>\n

The beauty of the Magnificent Seven is that they all possess one or more sustainable competitive advantages<\/a>, providing them with ample cash flow to undertake intriguing growth initiatives. This includes social media maven Meta Platforms<\/strong> (NASDAQ: META), which is among the 13 publicly traded companies on U.S. exchanges to be valued at north of $1 trillion. <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.<\/strong>\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/strong><\/a> <\/p>\n

But sometimes high-growth initiatives require sacrifices. Mark Zuckerberg’s Meta appears set to abandon a $174 billion investment that’s had a decisively positive impact on its bottom line to further its AI ambitions. <\/p>\n

\"The<\/a> Image source: Getty Images. Meta Platforms may be on the verge of axing this $174 billion investment <\/p>\n

Make no mistake: Meta’s billionaire boss has aggressively invested in several high-growth initiatives, including the metaverse and, more recently, artificial intelligence. But it’s Meta’s hearty share repurchase program that’s done some heavy lifting over the last decade. <\/p>\n

Although no share buybacks were undertaken in 2016, the company has been purchasing its own stock on a regular basis ever since: <\/p>\n

Collectively, Meta Platforms has spent approximately $174 billion to retire nearly 12.7% of its outstanding shares. For companies with steady or growing net income, such as Meta, a steadily declining share count can result in higher earnings per share over time. In other words, share repurchases have made Meta’s stock more attractive to value-seeking investors. <\/p>\n

But with the company increasing its forecast for AI-related capital expenditures (capex), it hasn’t repurchased shares since the third quarter of 2025. Furthermore, reports have suggested that Meta is weighing the option of issuing equity and undoing some of its share buybacks to fund its AI infrastructure build-out. <\/p>\n

\"An<\/a> Image source: Getty Images. History offers a tale of promise and peril for Meta <\/p>\n

Historically speaking, Meta’s all-in approach with artificial intelligence isn’t without risks. Every game-changing technology for more than three decades has endured an early stage bubble-bursting event. Meta shareholders are especially aware of this historical correlation, given the company’s poor performance in 2022 after the metaverse bubble burst. <\/p>\n

The puzzle pieces for an AI bubble are firmly in place. If history were to rhyme and the AI bubble bursts, Meta Platforms’ stock would likely be weighed down, at least over the short term. <\/p>\n

At the same time, Meta is one of the few companies enjoying immediate benefits from the integration of AI solutions. Incorporating generative AI into its advertising platforms has enabled Meta’s clients to tailor static and video messages to users. This can improve click-through rates and enhance Meta’s already impressive ad pricing power. <\/p>\n

Zuckerberg’s company also recently unveiled plans to sell excess AI data center compute capacity. This should help ease the sting of Meta’s otherworldly AI capex, especially given its sustainable competitive edge and robust cash flow tied to its social media assets. <\/p>\n

Meta’s AI investments should pay off in the long term, but the ride could be bumpy without share buybacks as an added catalyst. <\/p>\n

Should you buy stock in Meta Platforms right now? <\/p>\n

Before you buy stock in\u00a0Meta Platforms, consider this: <\/p>\n

The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/strong><\/a>\u00a0for investors to buy now\u2026 and\u00a0Meta Platforms\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n

Consider when\u00a0Netflix<\/strong>\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $371,842<\/strong>!*\u00a0Or\u00a0when\u00a0Nvidia<\/strong>\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,244,783<\/strong>!* <\/p>\n

That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x<\/strong>,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n

See the 10 stocks \u00bb<\/strong><\/a> <\/p>\n

*Stock Advisor returns as of July 20, 2026. <\/p>\n

Sean Williams<\/a> has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

Meta Platforms Looks Set to Abandon a $174 Billion Investment to Fuel Its AI Ambitions<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"Since the 2022 bear market bottomed nearly four years ago, Wall Street’s historic rally has been driven by…\n","protected":false},"author":2,"featured_media":594982,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,18,19,17,3337,252021,82],"class_list":["post-594981","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-eire","tag-ie","tag-ireland","tag-meta-platforms","tag-share-repurchase","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116952182456384134","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/594981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=594981"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/594981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/594982"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=594981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=594981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=594981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}