Reality check: despite the popular "Zuck misallocates capital" narrative surrounding the company, $Meta Platforms, Inc.(META)$ has generated over $500 billion in cash flow from operations for shareholders since 2012, with less than 50% of that spent on CapEx. Even during this AI infrastructure boom, CapEx is only 60% of CFO in 2025, with FCF reaching $46 billion. This puts the company trading at just 30x FY25 FCF.
The market clearly doesn't fully appreciate how profitable this company will look in the coming years as CapEx tapers while CFO continues to expand significantly. For now, let the market complain about a founder-led mega-cap tech company leveraging its strong balance sheet and cash flow to actually innovate and grow (all while still growing revenue at nearly 30% year-over-year).
I'll bookmark this for later, as the rerating back up could be sharp once sentiment shifts and the market regains its senses.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
