Position held
META
Meta Platforms
- Return
- +11.39%
- Quantity
- 93
- Cost
- $553.70
- Price
- $616.77
- Opened
- 2026-08-24
- Value
- $57,360
3.58 billion people a day, and a bill that keeps growing.
Meta sells attention. Facebook, Instagram, WhatsApp, Messenger and Threads together reach 3.58 billion daily users, up 7%, and advertisers pay to get in front of them. In 2025 ad impressions rose 12% and average price per ad rose 9% — both levers moved at once, which is the signature of intact pricing power.
Operating income was $83.3B on $200.9B of revenue; the apps segment margin is 52%. Return on invested capital sits around 30%.
What cannot be ignored: in the second quarter of 2026, despite revenue up 28% over the half, operating income fell 8%, from $20.4B to $18.8B. R&D swelled 67% and general expenses more than doubled. Capital expenditure was already $72.2B in 2025 and is accelerating. Meta is spending like a company running to stand still.
We take a deliberately small position. The advertising franchise is among the best ever built; the capital allocation discipline is not yet proven. The size of the line reflects that gap, not our enthusiasm.
What would make us sell
We sell if apps segment margin falls below 35% for two consecutive quarters while growth is under 5%, or if impressions, average price per ad, or daily users decline year over year.