Source item

$META is currently deprecating its capital base ($176B) over 11 years (1Q D&A was $3.9B). (2) And over the past year their capital base has increased by $39B ($137B to $176B), yet their D&A increased at only a $2.1B annualized rate($526M Y/Y increase x 4). That’s over 18 year life, on the margin! $META (3) So if Mag7 capex continues to grow at 50% annually, at what point do we have a material “quality of earnings” issue? $META $MSFT $AMZN $GOOG $NVDA (4) And on a “Hyperscaler Comp” basis, $AMZN is at 6 years, $MSFT is 10 years, and $GOOG(!) is 15 years.