Meta reported record revenue, but AI spending pressures dragged stock down nearly 7% in after-hours trading

Odaily reported that Meta Platforms (META.O) released its second-quarter earnings, achieving record revenue, but increased investment in AI infrastructure raised market concerns about cost pressures.

Meta's second-quarter revenue was $60.8 billion, up 28% year-over-year; net profit was $15.8 billion, falling short of analyst expectations. The company also slightly raised the lower end of its annual capital expenditure guidance from $125 billion to $130 billion, while keeping the upper limit unchanged at $145 billion.

As a result, Meta's stock price fell over 6.8% in after-hours trading. To accelerate AI competition, Meta has invested tens of billions of dollars in chip procurement, data center construction, and top talent recruitment. Recently, it also partnered with BlackRock to raise at least $12 billion for building a data center in Texas. Meta's second-quarter free cash flow was $784 million.