Seeking Alpha
22 Oct 2026, 12:45 UTC · 57m ago
The AI Spending Boom May Have Just Taken A Turn For The Worse
Impact · against what's priced in
The reports on Meta and Oracle are largely non-catalysts as they confirm the market's existing refusal to reward AI spending and its existing penalties for capital intensity. Meta's dilutive financing and Oracle's FCF destruction are already baked into their heavily discounted valuations.
- META−0.10
Already priced in
- The price assumes
A free-cash-flow margin holding near 22.9%
The introduction of Class C shares to fund capex as free cash flow shrinks confirms the financial pressure the market has already factored into a price that refuses to credit AI-driven upside.
What META's price assumes · Sep 2
