Meta's revenue hits record high, AI spending pressure drags stock down nearly 7% in after-hours trading

Odaily Planet Daily News Meta Platforms (META.O) released its second-quarter earnings report, with revenue reaching a record high, but increased investment in AI infrastructure has raised market concerns about cost pressure.

Meta's second-quarter revenue was $60.8 billion, a year-over-year increase of 28%; net profit was $15.8 billion, falling short of analysts' 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 end unchanged at $145 billion.

As a result, Meta's stock fell more than 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 finance at least $12 billion to build a data center in Texas. Meta's second-quarter free cash flow was $784 million.