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Excess Returns · Tuesday, August 11, 2026

Meta's AI Investment Focuses on Core Business Improvement

Dom Rizziolan explains that Meta's significant AI investments are aimed at enhancing its core business, which is already showing acceleration. He contrasts this with AWS and Azure, where AI is seen as a more direct growth driver, positioning AI as an existential platform for Meta's future strength.

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The tape

3 quotes
Obviously, the company that reacted poorly after was primarily meta.
Dom Rizziolan
And the thing that's tough for the market to get around with meta is that they're investing all this to just make the core business better. And the core business is already accelerating, right?
Dom Rizziolan
But this is about making their core business better and AI being an existential platform that meta has to win in order to remain very strong going forward, not necessarily accelerating, you know, uh, a business that's so obvious to see like, like it is AWS or AWS or Azure.
Dom Rizziolan
Heard on Excess Returns — “We Asked T. Rowe's $8 Billion Tech Manager Why We Are in 1998 — And Why Software Is in Trouble, published Tuesday, August 11, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.06
Meta's AI Investment Focuses on Core Business Improvement — Heardvine