Monetization outpaces capex
Capex outruns monetization
Meta cash waterfall: operating cash flow, capex draw-off, free cash flow, buybacks and debt
Ads + AI
monetization
Operating cash flow
the waterfall's supply
Capex outgrows
monetization
absorbs OCF
FCF 0
tripwire: Q2 FCF print
cash waterfall
compresses
OCF lags capex
FCF inflects
positive
free cash flow
turns negative
returns to holders
Buybacks
Buybacks pause
buybacks resume
Long-term debt
climbs
stays low
Re-rating holds
$855 case intact
Bull case breaks
multiple compresses
earnings multiple compresses even while revenues grow
consensus FY26-27: negative FCF - a modeled scenario, not a forecast