Meta: The Story Is Getting Trickier To Defend (Rating Downgrade)

Meta Platforms, Inc. delivered formidable 26% Y/Y revenue growth and strong Q4 guidance, with core ad business showing robust pricing power from AI-driven improvements. Despite operational strength, META's elevated CapEx and new Class C share structure signal a shift toward external funding, raising dilution and capital structure concerns. Impression growth is decelerating, and upcoming 2027 CapEx guidance, combined with potential share issuance, introduces downside risk to the investment thesis.