Meta Platforms (META) signaled heavy multiyear capital spending to build compute capacity and train models, stoking the investor debate over returns on investments, Wedbush Securities said Thursday in a report.

Wedbush raised its estimates for capital spending to $145 billion from $138 billion in 2026, to $210 billion from $173 billion in 2027, and to $245 billion from $202 billion in 2028.

Meta has discussed possible long-term ways to generate returns from its infrastructure, including eventually selling compute capacity, though management does not expect to have excess compute in 2026 or 2027, the report said.

Meta also pointed to emerging products such as Meta One, licensing Muse Spark, and Business AI tools as longer-term opportunities to generate returns beyond core advertising, the report said. Wedbush called these efforts "nascent" and wants more evidence that they can drive revenue growth.

Wedbush lowered its price target on Meta stock to $595 from $671 and maintained its neutral rating.

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