Meta's Record Revenue Fails to Offset AI Cost Concerns, Stock Drops

Odaily Odaily reports Meta Platforms (META.O) posted record-high revenue for the second fiscal quarter, but updates on its AI spending plans sparked investor concerns over infrastructure building costs. Meta slightly raised the lower end of its annual capital expenditure guidance from $125 billion to $130 billion, while keeping the upper ceiling unchanged at $145 billion. Its Q2 revenue reached $60.8 billion, a 28% year-over-year increase, but net profit was $15.8 billion, below analyst expectations. Following the announcement, Meta's stock fell over 6% in after-hours trading. To keep pace in the AI race, Meta has poured tens of billions into chip procurement, data center construction, and top talent recruitment, recently partnering with BlackRock to raise at least $12 billion for a data center in Texas. Meta's Q2 free cash flow stood at $784 million. (Jinshi)