William Blair Reiterates Outperform Rating on Meta
William Blair analyst Ralph Schackart reiterated an Outperform rating on Meta (NASDAQ: META).
“Key takeaways.
First, AI is increasing engagement at scale.
Meta had over 3.5 billion DAUs across its Family of Apps in December, with Facebook and WhatsApp both above two billion DAUs and Instagram just short of that number.
Ad impressions grew 18% and 12% in the fourth quarter of 2025 and for the full year, respectively.
In addition, watch time on Instagram Reels grew over 30% in the fourth quarter and video watch time on Facebook grew double digits in the U.S., one of its largest increases in a few years.
Second, Meta is rolling out more models in 2026. The company plans to roll out a new model over the coming months.
Meta CEO Mark Zuckerberg prefaced the release by claiming the models will be good, but a better sign of the rapid trajectory the company’s Superintelligence Labs is on.
It expects to release new AI models and products throughout 2026.
Third, there is a notable step-up in expenditures.
Meta spent $72 billion on capital expenditures in 2025 and warned investors the company’s guide for 2026 would be “notably larger.” The company announced that it expects to spend $125 billion in capital expenditures in 2026 at the midpoint, driven by increased investments into its Superintelligence Labs along with the core business.
In terms of operating expenses, the company is guiding to $165.5 billion at the midpoint.
It expects the majority of expense growth to be driven by infrastructure costs, higher depreciation, and more infrastructure operating expenses.
The second-largest expense category is employee compensation as Meta looks to find top AI technical talent.
However, the company still expects full-year operating income above 2025 levels.”
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