Meta posted a record $56.31 billion Q1 revenue, up 33% YoY, but its capex jumped 35% to $33 billion for the quarter. The surge reflects massive AI‑related infrastructure spend and a widening component shortage, prompting the company to project a full‑year outlay between $125 billion and $145 billion. Investors reacted skeptically, fearing the cash burn could outpace growth and raises questions about long‑term sustainability.

Analysts point to two trouble spots: ballooning infrastructure costs and an undefined product roadmap. Meta warned AI development could cost up to $30 billion more than its low estimate, while Quest headset sales lagged, dragging down Reality Labs revenue by $10 million year‑over‑year. Competitors such as Samsung are gearing up to launch rival AI glasses, tightening the market as consumer interest wanes.

Zuckerberg doubled down on AI, unveiling Meta Spark and insisting the technology should augment human effort rather than replace it. Yet the company’s headcount rose marginally to 77,986 while public layoffs persisted, fueling doubts about execution. With profit margins under pressure, Meta now faces a stark choice between scaling AI infrastructure or trimming its speculative Reality Labs bets or risk eroding shareholder confidence.