Meta Platforms

Meta allocates capital aggressively to grow its business and return to shareholders. Reinvestment is high: it is spending $60–72 B/year on capex (mostly on data centers and AI infrastructure)), building capacity for future growth.

Starting in 2024, Meta resumed large share repurchases, spending $30 B in 2024) and another $23 B in the first half of 2025). This sizable buyback activity helps offset dilution from stock-based compensation and returns excess cash. Dividends are modest (~$5 B in 2024).

Overall, capital is focused on high-return growth areas (AI, core ads platform) and opportunistic buybacks when possible. Meta has no major problematic acquisitions (Scale AI investment was strategic) and uses minimal debt.

One caution: stock-based compensation remains large, but the recent reduction in equity grants (≈10% cut reported) and heavy repurchases mitigate dilution. We judge allocation as generally prudent for a high-growth phase.