Meta Platforms Shifts to Full-Stack AI Technology Model

Meta Platforms Inc. is transitioning into a full-stack technology company by integrating its data centers, custom chips, foundation models, and consumer applications. The company is leveraging an AI flywheel to drive growth, specifically through the Advantage Plus tool, which has exceeded a $75 billion annual run rate, and the adoption of Meta Business Agents by over 1 million weekly business users.

Financial performance remains mixed. The company's stock declined 21.43% over the past year following a second-quarter miss and $2.4 billion in legal charges. Meta has projected 2026 capital expenditures to reach between $130 billion and $145 billion to support its infrastructure buildout. These investments are supported by $115.8 billion in operating cash flow generated in 2025, which also funded $26.2 billion in share buybacks.

CEO Mark Zuckerberg reports that the company's advertising business is growing faster on a dollar basis than any other reported ad business. Beyond software, Meta is seeing strong sales of AI-integrated Ray-Ban and Oakley glasses as it shifts toward personal superintelligence and AI monetization.