Paul Tudor Jones Shifts from Meta: A Smart Exit or a Strategic Pause?

Jones, known for making bold moves, sold his Meta shares in the last quarter. The timing lines up with a shift in how big‑tech companies spend on artificial intelligence. Instead of quick returns, the new AI race looks like a long‑term, costly construction project.

Meta’s Strong Revenue, Rising Costs

Meta’s recent earnings show that the company is still pulling in strong revenue. In Q4 2025, it earned almost $60 billion—up 24% from the year before. The ad engine, which drives most of its income, remains healthy. Yet the company is pouring money into new data‑center facilities and AI hardware, raising costs by 40% in the same period.

Heavy Investment in Infrastructure

• Fiber optics: A multi‑year partnership with Corning will supply fiber optics for U.S. data centers.
• Nuclear power: A deal with Oklo aims to build an advanced nuclear plant in Ohio that will feed Meta’s AI centers.
• Chip deployment: A long‑term collaboration with Nvidia to deploy GPUs and other chips across its network.

These spending plans are reflected in Meta’s capital expenditures, which climbed to $22 billion for the quarter and are expected to reach $72 billion for the year. The company is also returning cash to shareholders through share buybacks worth $26 billion in 2025.

Stock Outlook

Despite the high costs, Meta’s stock is still trading near $640, a level that has dipped only modestly year‑to‑date. Analysts remain bullish; many have raised their price targets, and the consensus rating is “Strong Buy.” The company’s forward earnings multiple sits at 22×, higher than the sector average, indicating a premium valuation.

Why Jones Sold

Jones likely saw that Meta’s growth is becoming more capital intensive. The company’s path to future profits will require flawless execution and significant investment. For an investor who thrives on high‑risk, high‑reward plays, stepping back before the most expensive phase begins can be a prudent strategy.

Meta’s Outlook

Jones’ exit does not signal trouble for Meta. The firm’s revenue growth, robust cash flow, and ambitious AI roadmap still point to a positive trajectory. Yet the move underscores that even seasoned investors reassess their positions when the balance of risk and reward shifts.