[Caitong Overseas Team] META View Update: Capex Maintained High; AI Revenue Needs More Clarity

English summary

META view update: Capex maintained high, AI revenue needs more clarity [Caitong Overseas Team] 260730. Judging from the after-hours -7% market reaction, the market was not satisfied with this earnings report and voted with its feet. We think possible reasons are as follows: 1. Q2 revenue slightly beat expectations, with ad revenue growth driven by both volume and price, but given the company's actions such as increasing ad load rates and adding ad inventory in regions with lower monetization efficiency, the extent of AI's role may still be questionable. Additionally, Q3 revenue guidance is $61-64 billion, with a midpoint of $62.5 billion, below Bloomberg consensus of $63.2 billion. 2. 2026 capex remains high, and the lower end was raised from $125 billion to $130 billion, so 2026 capex guidance is $130-145 billion. No specific number for 2027 capex was given. 3. AI's contribution to revenue still needs further tracking and observation. …