Meta Just Announced $135 Billion in AI Spending for 2026

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Meta just reported Q4 earnings and announced they're spending up to $135 billion on AI infrastructure in 2026.

That's not a typo. $135 billion.

Meanwhile, email marketing is delivering $36 in ROI for every dollar spent while most brands are still chasing social media engagement that doesn't convert.

And AppLovin (App) stock dropped over 20% in a single session as the market continues separating companies with real AI strategies from those just talking about it.

Let's break it down.

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Market Reality Check

AppLovin Stock Dropped 22.5% in a Single Day

AppLovin's stock declined 22.5% in one trading session this week.

The market is making a clear statement. Companies without real AI strategies are getting punished. Investors are reallocating capital toward platforms actively building for the future, not just talking about it.

Adapt or get left behind.

Read the full breakdown

Email Renaissance

Email Is Averaging $36 ROI Per Dollar While Social Media Struggles to Convert

Email marketing is averaging $36 in return for every dollar spent. Open rates are nearly 36% across all industries. With 4.97 billion global email users expected by 2028, the channel is growing.

AI tools can draft emails in seconds. Automation responds to real-time customer behavior. Platforms like Shopify Email and Klaviyo let you design dynamic flows based on browsing behavior, purchase history, and engagement patterns.

Social media is great for awareness. Email is better for conversion.

The brands treating email like a 2020 tactic are leaving money on the table.

See more here

Data Deep Dive

What Meta's Q4 Earnings Actually Mean for Advertisers

Meta posted $59.89 billion in Q4 revenue, up 24% year over year.

3.58 billion people use one of Meta's apps daily, up 7% year over year.

But here's the number that matters most for advertisers: AI-driven optimizations delivered a 7% lift in views of organic feed and video posts on Meta.

That's not a small tweak. That's a fundamental shift in how content gets distributed.

Meta is focusing 2026 on "personalized superintelligence." Feeds that anticipate what you want before you search. AI agents that help you shop, create, and communicate. Advertising that's more relevant, less intrusive, and more effective.

They're putting $115-135 billion into capex in 2026. Data centers, GPUs, AI infrastructure, specialized hardware for training next-generation models.

AI-powered recommendations are already driving engagement up across all apps. AI ad tools are improving ROAS for advertisers. AI agents are going to unlock entirely new use cases that don't even exist yet.

And internally? Meta is investing in AI-native tooling, flattening teams, and seeing projects that used to require big teams now getting done by a single talented person.

2026 is the year AI starts to dramatically change how Meta works. Both as a platform and as a company.

Read Jason's full breakdown

Tldr

What We Covered

Meta is rebuilding how content gets discovered and monetized. AI-driven optimizations delivered a 7% lift in organic Facebook views.

They're forecasting up to $135 billion in AI spending for 2026. If your advertising strategy assumes platforms will work the same way they did last year, you're already behind.

Email is delivering $36 ROI for every dollar spent with nearly 36% open rates. AI tools make it faster to produce high-quality campaigns that respond to real-time behavior.

If you're not investing in email, you're leaving money on the table.

Markets are reflecting a similar shift. AppLovin (APP) fell more than 20% in a single session as the market continues to differentiate companies with clear AI execution strategies from those just talking about it