LI SUSAN J sold $5.1M of META (indirect holdings)

Meta (META) reported Q2 revenue of $60.8B, up 28% YoY, with operating income of $18.78B. Analysts set price targets between $762–$1,000, citing AI and ad revenue growth. CEO Mark Zuckerberg announced plans to invest $100–$200B in AI projects. Meta unveiled new AI models and expects Q3 earnings on October 21. Guggenheim raised its 2027 capex forecast for Meta to $225B.

The cost of insuring against US tech defaults has surged to record levels, particularly for data centers. Oracle's 5-year credit default swap spreads widened 26 bps to 288 bps, while SoftBank's spreads increased 24 bps to 424 bps. CoreWeave, a data-center operator, saw spreads exceed 1000 bps and its shares dropped 21% on Wednesday. Investors are concerned about AI's profitability and debt servicing capabilities.

The Nasdaq Composite fell 1.88% to 26,692.87 on October 14, 2026, driven by higher-than-expected inflation data and a warning from ASML about semiconductor demand. Key tech stocks like AMD, Micron, and Nvidia declined, while Apple rose 0.3%. The index is now 3.7% below its 52-week high.

Mexico's President Claudia Sheinbaum issued a decree requiring Meta, TikTok, and X to protect minors from harmful content, mandating design restrictions and immediate removal of risky material. Non-compliance may lead to legislation with penalties. The move follows a school attack in October and aligns with global efforts to enhance child safety online.

Meta Platforms (META) shares fell 3.7% after Guggenheim analyst Michael Morris raised his 2027 capital spending estimate to $225 billion. The company reported 28% revenue growth to $60.80 billion in Q2, but operating income declined 8%. Meta projected $130-$145 billion in 2026 capital expenditures for AI and core business. The stock is 15.16% below the GF Value estimate.

Democratic senators accused Meta of misusing a federal R&D tax credit, saving $6.6B from 2023-2025, primarily for AI data centers. They claim the credits are intended for research, not capital expenditures. Meta acknowledges legal risks in its filings. Senators demand details on the company's tax strategy.