Mark Zuckerberg Wrote That AI May Soon Deliver “Personal Superintelligence to Everyone” Just Before Meta’s Free Cash Flow Cratered 91%.
Do Investors Buy the Vision?
Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg made some bold claims on the company’s second-quarter earnings conference call, but they weren’t enough to appease investors after the company reported lackluster earnings results. The company’s earnings came up short of Wall Street consensus estimates, and its revenue guidance for the current quarter also fell short of consensus. Free cash flow also tanked in the quarter to just $784 million, down from over $8.5 billion one year ago.
This represented a 91% drop. Like other hyperscalers, Meta has seen free cash flow plummet due to massive investments in artificial intelligence (AI) infrastructure. The company is guiding for capital expenditures (capex) between $130 billion and $145 billion this year.