AI Superintelligence Pivot & Capex

Meta commits all-in to superintelligence via MuseSpark, Avocado, and Scale AI partnership. Employee surveillance backlash, AI ad platform shift, and Bosworth's hard-driving style add execution risk. Capex $125B with major compute deals (Hyperion, Nebius, Enbridge solar). Layoffs of 8k and 7k reassignments to AI. Q1 revenue $56.3B (+33%) but growth decelerating; earnings quality concerns from tax benefit and depreciation changes. Stock at key support zone. Nvidia CFO reveals Meta's GEM model drove 3.5x ad click increase on Facebook and 1%+ conversion lift on Instagram, providing concrete AI ROI. $196B ad revenue in 2025, $243B forecast for 2026. However, free cash flow remains suppressed by buildout spending, suggesting hardware plays may outperform Meta stock near-term. Internal trust issues persist: 8,000 layoffs leave employees wary despite Zuckerberg's reassurance, reinforcing execution risk and potential talent drain.