Paul Tudor Jones doesn’t make headlines by accident, and his fourth-quarter exit from Meta Platforms (META) says a lot without spelling anything out. Jones walked away just as Big Tech’s AI spending race started to look more like a long, expensive build rather than a quick payoff. That’s the real “why” worth unpacking here as we ask what changes in the risk‑reward when the story is strong enough to make a macro legend tap out.
Meta's latest results make Jones' decision even more interesting. The company reported Q4 2025 revenue of $59.89 billion, up 24% year-over-year (YOY), showing that the core ad engine still has plenty of fuel. Shares are also up 4% over the past three months, yet the debate around spending and valuation has not cooled. At the same time, Meta is pressing ahead with its growth plan through an expanded partnership with Nvidia (NVDA).
So did Jones simply take profits, or is he stepping aside before the most expensive chapter begins? Let’s dive in.
The Meta Numbers That Paul Tudor Jones Walked Away From
Headquartered in Menlo Park, California, and operating global social, messaging, and VR ecosystems, Meta Platforms now has a market capitalization near $1.61 trillion and pays an annual dividend of $2.10 per share, yielding 0.32% on a forward basis.
META stock now trades near the $640 level, down 3% year-to-date (YTD) and 4.5% over the past 52 weeks.
Meta's scale and cash‑return profile sit alongside a premium valuation, with META stock trading at 22.1 times forward earnings and 8.2 times sales versus sector medians of roughly 14 times and 1.3 times, respectively.
The most recent earnings release on Jan. 28 showed diluted EPS of $8.88, beating the $8.21 consensus estimate by 8% and confirming that the core business is still executing ahead of Wall Street’s expectations. This print came on the back of revenue of $59.89 billion for Q4 2025 and $200.97 billion for the full year, up 24% and 22% YOY, respectively.
This was also paired with sharply higher costs and expenses, which reached $35.15 billion in Q4 and $117.69 billion for 2025. These figures rose 40% and 24% YOY as Meta leaned harder into AI infrastructure, data centers, and long‑dated growth projects that will take time to fully monetize.
The company's capital intensity shows up clearly in capital expenditures of $22.14 billion for Q4 and $72.22 billion for the full year, alongside a capital return program that delivered $26.26 billion of share repurchases for 2025.
That investment push is supported by robust cash generation, as operating cash flow reached $36.21 billion in Q4 and $115.8 billion for the year. Free cash flow came in at $14.08 billion and $43.59 billion over the same periods.
Meta’s Massive Infrastructure Bets Take Shape
Meta is quietly building an industrial‑scale backbone for its next phase of growth with a multiyear deal worth up to $6 billion with Corning (GLW). This deal will supply Meta with advanced optical fiber, cable, and connectivity solutions for its U.S. data centers, while also supporting a significant manufacturing expansion in North Carolina. In practice, it locks in critical networking capacity for Meta’s AI‑heavy campuses and helps secure domestic supply.
The company is also tackling the power side of the equation head‑on. Meta Platforms' agreement with Oklo (OKLO) backs the development of a phased 1.2 gigawatt (GW) advanced nuclear energy campus in Pike County, Ohio, designed specifically to meet data‑center and AI power needs over the coming decade. This structure lets Meta prepay for power and fund early project work, securing long‑duration clean baseload electricity that scales toward the full 1.2 GW target.
Chip infrastructure is getting the same treatment. A multiyear, multigenerational partnership with Nvidia (NVDA) spans on‑premises and cloud AI infrastructure, including deployment of Nvidia CPUs and “millions” of Blackwell and Rubin GPUs. The partnership also includes Spectrum‑X Ethernet integrated with Meta’s Facebook Open Switching System platform. That effectively ties Meta’s data centers, which remain stacked with leading‑edge accelerators.
Wall Street Stays Bullish on META Stock
Meta Platforms' next earnings release is scheduled for April 29, with the Street looking for EPS of $6.67 for the March 2026 quarter. That compares with $6.43 in the prior-year period, which works out to an estimated YOY growth rate of nearly 4% for the current quarter.
This is not the kind of profile that usually scares off traditional growth investors. One of the clearest votes of confidence for META came when Bank of America raised its price target from $810 to $885 following the latest results and AI investment plans.
That move fits neatly into the broader sentiment picture, where the consensus rating across 56 covering analysts sits at “Strong Buy.” Meanwhile, the average 12‑month price target for META stock is $863.83, implying roughly 35% potential upside from current levels.
Conclusion
Paul Tudor Jones didn’t bail on Meta because it’s broken. He likely walked away because it’s rich, crowded, and entering a heavy‑spend phase where execution really has to be near-perfect. The mix of mid‑teens revenue growth, aggressive AI and data‑center buildout, and roughly 30% to 35% implied upside from consensus targets still points to a bias higher over the next year, though probably with some bumpiness along the way. In the end, Jones chose to lock in a great run and reduce risk, while many shareholders are choosing to stay for the next chapter of Meta Platforms' story.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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