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Meta Platforms' AI spending fuels stock swing after Q2 earnings
Meta Platforms reported second‑quarter revenue up 28% year‑over‑year to roughly $61 billion, with advertising revenue rising 27% to about $59.4 billion. Net income fell 14% to $15.8 billion, missing analyst expectations, and free cash flow plunged to $784 million, a 91% decline from the prior year. The company raised its annual capital‑expenditure guidance for AI infrastructure to $130‑145 billion, up from the $125 billion forecast three months earlier. CEO Mark Zuckerberg defended the spending, saying AI will boost core operations and be monetized by 2028, while CFO Susan Li outlined plans to rent excess compute capacity. Investors reacted sharply: the stock dropped about 8% after the earnings release, then recovered roughly 2% the following day. Institutional investors also adjusted positions; Genesis Financial Group cut its Meta stake by 31.5% to 11,420 shares, while other funds made modest purchases. Meta also highlighted AI product initiatives, including autonomous AI agents and the Muse Spark model, and reported a 16% rise in Reality Labs revenue to $431 million.
Entities
Citigroup · Genesis Financial Group LLC · Groupama Asset Management · Mark Zuckerberg · MetLife, Inc. · Meta Platforms · Meta Platforms Inc. · Meta Platforms, Inc. · Susan Li
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Meta's stock dropped about 8% after the earnings release and rose roughly 2% the following day. rocketnews.com · www.ibtimes.com.au
- [● 2 SOURCES] Meta's advertising revenue grew 27% year‑over‑year to about $59.4 billion. rocketnews.com · www.ibtimes.com.au
- [● 2 SOURCES] Meta's second‑quarter revenue increased 28% year‑over‑year to about $61 billion. rocketnews.com · www.ibtimes.com.au
- [● 2 SOURCES] Meta's net income fell 14% to $15.8 billion, missing analyst expectations. rocketnews.com · www.ibtimes.com.au
- [● 2 SOURCES] Meta plans to monetize AI compute capacity and develop autonomous AI agents. rocketnews.com · www.it-boltwise.de
- [● 2 SOURCES] Meta raised its annual AI‑related capital‑expenditure guidance to $130‑145 billion. rocketnews.com · www.it-boltwise.de
- [○ 1 SOURCE] Genesis Financial Group reduced its Meta stake by 31.5% to 11,420 shares.
- [● 2 SOURCES] Meta's free cash flow fell to $784 million, a 91% decline from the prior year. rocketnews.com · www.ibtimes.com.au