Meta reports record revenue, but AI spending pressure drags stock down nearly 7% after hours

Odaily Odaily reports that Meta Platforms (META.O) released its second-quarter earnings, achieving record revenue, but increased investment in AI infrastructure has sparked market concerns over cost pressure.

Meta's second-quarter revenue reached $60.8 billion, a 28% increase 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 maintaining the upper limit at $145 billion.

As a result, Meta's stock 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 top talent recruitment. Recently, it also partnered with BlackRock to raise at least $12 billion for building a data center in Texas. Meta's free cash flow for the second quarter was $784 million.