White House Considers Cost Burden on Data Centers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 15 2026
0mins
Should l Buy META?
Source: CNBC
- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 525.720
Low
655.15
Averages
824.71
High
1117
Current: 525.720
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Montaka Global Investments Q4 2025 Investor Letter Highlights
- Portfolio Performance: Despite a strong global equity market in 2025 driven by AI and top tech stocks, Montaka's portfolio underperformed due to significant dispersion in stock returns, with some holdings declining from short-term factors like AI disruption and weakness in housing sectors, indicating market uncertainty.
- Positive Market Outlook: Montaka maintains a positive outlook, believing that long-term opportunities will grow as AI adoption accelerates, particularly in investments in data centers, semiconductors, and critical commodities like lithium, reflecting confidence in structural trends.
- Strategic Adjustments: The fund has adjusted its strategy by adding undervalued positions, trimming holdings that rallied, and initiating a new investment in a lithium producer to address future supply shortages linked to renewable energy and battery demand, showcasing its adaptive investment approach.
- Meta Platforms Analysis: Montaka highlighted Meta Platforms (NASDAQ:META) in its letter, noting a one-month return of -9.30%, yet emphasized that AI-driven improvements in ad targeting significantly enhance advertising effectiveness, underscoring the company's competitive edge in digital advertising.
See More
Meta Tests Instagram Plus Subscription Service Offering Exclusive Features
- Subscription Service Testing: Meta is testing a premium subscription service called Instagram Plus on its Instagram app, allowing users to view Stories without notifying the poster, enhancing user privacy and potentially attracting more subscribers.
- New Feature Rollout: The subscription will offer unlimited audience list creation and the ability to see how many times a Story has been viewed, enhancing user engagement and content management capabilities, which may increase user retention.
- Market Testing Regions: The service is currently being tested in Mexico, Japan, and the Philippines, with pricing varying by country, demonstrating Meta's flexible pricing strategy aimed at maximizing user acceptance and market penetration.
- User Base Impact: With approximately 3 billion monthly active users, Instagram may account for about 40% of Meta's total revenue, and if successfully launched, this service could significantly boost the company's revenue and competitive position in the market.
See More
Big Tech Faces Investment Cut Risks Amid Market Decline
- Dismal Investment Outlook: As stock prices fall, Big Tech companies and their investors are beginning to question their massive capital expenditure plans, which could lead to cuts or slower investments, thereby impacting future growth potential.
- Poor ETF Performance: The ETF tracking the Nasdaq-100 has declined by 9% in Q1 2023, marking its worst quarterly performance since June 2022, reflecting a lack of confidence in tech stocks.
- Private Equity Pressure: Rising bond yields are increasing borrowing costs for private equity and large investment funds, potentially forcing investors to sell off other investments to maintain returns, exacerbating liquidity risks.
- Uncertain AI Investment Returns: The substantial capital expenditures by Big Tech on AI infrastructure have unclear payoffs; if stock prices continue to decline, boards and investors may reassess these expenditures, further intensifying industry uncertainty.
See More
Australia Considers Legal Action Against Major Social Media Platforms
- Regulatory Action Assessment: Australia's online safety regulator is weighing legal action against major social media platforms, including Meta, Snapchat, and TikTok, for failing to effectively prevent children under 16 from using their services, potentially facing fines of up to A$49.5 million.
- Compliance Report Released: eSafety Commissioner Julie Inman Grant issued the first compliance report demanding ten platforms remove all Australian account holders under 16, noting that while about 5 million accounts have been deactivated, many children still manage to bypass age checks.
- Platform Accountability Issues: The agency flagged “significant concerns” with roughly half the platforms and is gathering evidence to determine whether they failed to take “reasonable steps” to comply with the law, indicating poor practices within the industry.
- Expected Legal Consequences: A decision on potential legal action is expected by midyear, with Communications Minister Anika Wells accusing the criticized platforms of deliberately not complying with Australian law, emphasizing their choice to do the bare minimum in compliance efforts.
See More
New Trends in AI Innovation and Collaboration Among Chinese Companies
- Industry-Specific AI Development: Chinese companies are shifting focus from large language models to industry-specific artificial intelligence to drive revenue growth, indicating a rising demand for customized solutions in the market.
- Alibaba Platform Upgrade: Alibaba launched the AI-integrated Accio Work platform, capable of autonomously processing customs paperwork and calculating profit margins, with expectations to increase monthly active users from millions to tens of millions, enhancing its competitiveness in the global market.
- Intellectual Property Trading Trend: China is promoting patent trading at a high level, as showcased at the Zhongguancun Forum, reflecting the importance of intellectual property and market potential for businesses.
- Robot Technology Innovation: Linkerbot focuses on humanoid robot development, aiming to map all basic human hand skills within three years, with a goal to reduce robot costs to below that of an iPhone, demonstrating a pursuit of practical technology applications.
See More
Meta Launches Aggressive Stock Option Program
- Stock Option Program: Meta Platforms has launched an aggressive stock option program aiming for a valuation of $9 trillion by 2031, requiring a 560% stock increase and a compound annual growth rate of 46%.
- Negative Market Reaction: Despite its strong assets in social media, Meta's stock has fallen about 19% this year and faced a $375 million fine related to child safety, which could hinder its long-term growth prospects.
- AI Investment Risks: Meta's heavy investment in artificial intelligence may turn into another financial pitfall, similar to its distancing from the metaverse strategy, leading to decreased investor confidence in future growth.
- Analyst Outlook: Many analysts are pessimistic about Meta's future, believing that achieving over 500% growth in the next five years is nearly impossible, with risks of its market cap falling below $1 trillion.
See More
Montaka Global Investments Q4 2025 Investor Letter Highlights
- Portfolio Performance: Despite a strong global equity market in 2025 driven by AI and top tech stocks, Montaka's portfolio underperformed due to significant dispersion in stock returns, with some holdings declining from short-term factors like AI disruption and weakness in housing sectors, indicating market uncertainty.
- Positive Market Outlook: Montaka maintains a positive outlook, believing that long-term opportunities will grow as AI adoption accelerates, particularly in investments in data centers, semiconductors, and critical commodities like lithium, reflecting confidence in structural trends.
- Strategic Adjustments: The fund has adjusted its strategy by adding undervalued positions, trimming holdings that rallied, and initiating a new investment in a lithium producer to address future supply shortages linked to renewable energy and battery demand, showcasing its adaptive investment approach.
- Meta Platforms Analysis: Montaka highlighted Meta Platforms (NASDAQ:META) in its letter, noting a one-month return of -9.30%, yet emphasized that AI-driven improvements in ad targeting significantly enhance advertising effectiveness, underscoring the company's competitive edge in digital advertising.
See More
Meta Tests Instagram Plus Subscription Service Offering Exclusive Features
- Subscription Service Testing: Meta is testing a premium subscription service called Instagram Plus on its Instagram app, allowing users to view Stories without notifying the poster, enhancing user privacy and potentially attracting more subscribers.
- New Feature Rollout: The subscription will offer unlimited audience list creation and the ability to see how many times a Story has been viewed, enhancing user engagement and content management capabilities, which may increase user retention.
- Market Testing Regions: The service is currently being tested in Mexico, Japan, and the Philippines, with pricing varying by country, demonstrating Meta's flexible pricing strategy aimed at maximizing user acceptance and market penetration.
- User Base Impact: With approximately 3 billion monthly active users, Instagram may account for about 40% of Meta's total revenue, and if successfully launched, this service could significantly boost the company's revenue and competitive position in the market.
See More
Big Tech Faces Investment Cut Risks Amid Market Decline
- Dismal Investment Outlook: As stock prices fall, Big Tech companies and their investors are beginning to question their massive capital expenditure plans, which could lead to cuts or slower investments, thereby impacting future growth potential.
- Poor ETF Performance: The ETF tracking the Nasdaq-100 has declined by 9% in Q1 2023, marking its worst quarterly performance since June 2022, reflecting a lack of confidence in tech stocks.
- Private Equity Pressure: Rising bond yields are increasing borrowing costs for private equity and large investment funds, potentially forcing investors to sell off other investments to maintain returns, exacerbating liquidity risks.
- Uncertain AI Investment Returns: The substantial capital expenditures by Big Tech on AI infrastructure have unclear payoffs; if stock prices continue to decline, boards and investors may reassess these expenditures, further intensifying industry uncertainty.
See More
Australia Considers Legal Action Against Major Social Media Platforms
- Regulatory Action Assessment: Australia's online safety regulator is weighing legal action against major social media platforms, including Meta, Snapchat, and TikTok, for failing to effectively prevent children under 16 from using their services, potentially facing fines of up to A$49.5 million.
- Compliance Report Released: eSafety Commissioner Julie Inman Grant issued the first compliance report demanding ten platforms remove all Australian account holders under 16, noting that while about 5 million accounts have been deactivated, many children still manage to bypass age checks.
- Platform Accountability Issues: The agency flagged “significant concerns” with roughly half the platforms and is gathering evidence to determine whether they failed to take “reasonable steps” to comply with the law, indicating poor practices within the industry.
- Expected Legal Consequences: A decision on potential legal action is expected by midyear, with Communications Minister Anika Wells accusing the criticized platforms of deliberately not complying with Australian law, emphasizing their choice to do the bare minimum in compliance efforts.
See More
New Trends in AI Innovation and Collaboration Among Chinese Companies
- Industry-Specific AI Development: Chinese companies are shifting focus from large language models to industry-specific artificial intelligence to drive revenue growth, indicating a rising demand for customized solutions in the market.
- Alibaba Platform Upgrade: Alibaba launched the AI-integrated Accio Work platform, capable of autonomously processing customs paperwork and calculating profit margins, with expectations to increase monthly active users from millions to tens of millions, enhancing its competitiveness in the global market.
- Intellectual Property Trading Trend: China is promoting patent trading at a high level, as showcased at the Zhongguancun Forum, reflecting the importance of intellectual property and market potential for businesses.
- Robot Technology Innovation: Linkerbot focuses on humanoid robot development, aiming to map all basic human hand skills within three years, with a goal to reduce robot costs to below that of an iPhone, demonstrating a pursuit of practical technology applications.
See More
Meta Launches Aggressive Stock Option Program
- Stock Option Program: Meta Platforms has launched an aggressive stock option program aiming for a valuation of $9 trillion by 2031, requiring a 560% stock increase and a compound annual growth rate of 46%.
- Negative Market Reaction: Despite its strong assets in social media, Meta's stock has fallen about 19% this year and faced a $375 million fine related to child safety, which could hinder its long-term growth prospects.
- AI Investment Risks: Meta's heavy investment in artificial intelligence may turn into another financial pitfall, similar to its distancing from the metaverse strategy, leading to decreased investor confidence in future growth.
- Analyst Outlook: Many analysts are pessimistic about Meta's future, believing that achieving over 500% growth in the next five years is nearly impossible, with risks of its market cap falling below $1 trillion.
See More
