Odaily Planet Daily report: Meta Platforms (META.O) reported record revenue for its second fiscal quarter, but updates to its AI spending plans sparked investor concerns over infrastructure construction costs. Meta 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. Second-quarter revenue reached $60.8 billion, a 28% year-over-year increase, but net profit of $15.8 billion fell below analyst expectations. As a result, Meta’s stock dropped more than 6% in after-hours trading. To keep pace in the AI race, Meta has invested tens of billions of dollars in chip procurement, data center construction, and recruiting top talent; recently, it partnered with BlackRock to raise at least $12 billion to build a data center in Texas. Meta’s free cash flow for the second quarter was $784 million. (Jinshi)
Meta's Q2 Revenue Reaches Record High, But AI Costs Trigger Share Price Decline
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Summary
Meta Platforms (META.O) reported record Q2 revenue of $60.8 billion, a 28% year-over-year increase, but its AI spending plans triggered a 6% post-market price decline. The company raised its annual capex guidance to at least $130 billion, while Q2 net income came in at $15.8 billion, below expectations. Free cash flow totaled $784 million. Meta has invested billions in AI infrastructure, including a $12 billion data center deal in Texas. Crypto price movements remain a key focus for traders amid broader market trends.
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