$META

$META can easily generate substantial ROI on its AI capex, contrary to what bears argue. It’s expected to add 4 GW of compute capacity by the end of 2027. Let’s say some of this capacity will be excess. What are the prospects? Well, Anthropic just committed to pay SpaceX $45 billion for roughly 300 MW of capacity through May 2029, or $15 billion a year. $META’s annualized cost of ownership for 1 GW of compute is around $9 billion, assuming a five-year GPU depreciation cycle. Even if we assume one-third of the rate Anthropic is paying SpaceX, $META could generate $16 billion per GW on its excess compute against $9 billion of annual cost. Wherever you look from, $META is a great opportunity here at 18x earnings.