Meta reports record revenue, AI spending pressures drag stock down nearly 7% after hours
Odaily Odaily reports that Meta Platforms (META.O) released its second-quarter earnings, with revenue hitting a record high. However, increased spending on AI infrastructure has raised market concerns about cost pressures.
Meta's second-quarter revenue was $60.8 billion, a 28% year-over-year increase. Net profit was $15.8 billion, below 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 limit unchanged at $145 billion.
As a result, Meta's stock price fell over 6.8% in after-hours trading. To accelerate its AI competition, Meta has invested tens of billions of dollars in chip procurement, data center construction, and hiring top talent. Recently, it also partnered with BlackRock to raise at least $12 billion to build a data center in Texas. Meta's second-quarter free cash flow was $784 million.
