Meta’s $60.8 billion Q2 revenue topped estimates but guidance fell short, fueling investor concerns over rising AI spending.
Meta Platforms (META) shares fell sharply Thursday after the company’s second-quarter earnings report failed to allay concerns about escalating artificial intelligence costs. While the social media giant posted $6.18 earnings per share on $60.8 billion in revenue for the June quarter, its sales guidance for the current period came in below analyst expectations.
The results marked a beat on both revenue and earnings compared to consensus estimates, but Meta’s increased capital expenditure forecast for AI infrastructure spooked investors. The company had previously signaled heavy investment in AI, which has yet to translate into material revenue growth.
Markets reacted swiftly, with META stock declining in after-hours trading, contrasting with a modest rise in the Dow Jones index ahead of key inflation data.