Summary

• Meta Platforms faces skepticism due to heavy AI investments lacking a direct revenue channel, unlike peers such as Google and Amazon.
• Meta is among the worst-performing big tech stocks in the past 12 months, but I discuss why this could be due to a misplaced perspective on Meta's AI capex.
• To correctly evaluate the return on Meta's AI investments, I believe investors have to look at how these investments are impacting its core advertising business.

The past year has not been a good time to be a Meta Platforms (META) investor. Meta stock is down 15% in the past 12 months, while Alphabet (GOOG) is up 103% and Amazon.com (AMZN

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