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News  ›  Benzinga

Michael Burry's Grim Warning: Meta Just Crossed A Line

Benzinga Logo Benzinga By Erica Kollmann
Michael Burry's Grim Warning: Meta Just Crossed A Line

Contrarian investor Michael Burry criticized Meta Platforms for its $600 billion Meta Compute initiative, warning that the company is abandoning its asset-light software business model for capital-intensive infrastructure. Burry predicts a crash in return on invested capital (ROIC) as Meta shifts from a high-efficiency ad business to a risky, low-efficiency physical infrastructure bet. Meta stock declined over 2% following the announcement.

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META   negative

Michael Burry issued a scathing critique of Meta's $600 billion capital expenditure plan for AI infrastructure, warning it will destroy the company's historical efficiency and return on invested capital. The stock declined 2% on the news, reflecting market concern about the massive capital commitment and shift away from Meta's profitable asset-light model.