Meta Continues to Boost AI Investment, but Wall Street Is 'Disappointed' by Profitability

[Financial News, New York = Lee Byung-chul] Meta Platforms shares fell more than 7% in after-hours trading on the 29th, following the company’s second-quarter earnings release. Revenue beat market expectations, but weaker-than-expected earnings per share and third-quarter revenue guidance weighed on the stock.
Meta Platforms reported second-quarter revenue of $60.8 billion, topping the market forecast of $60.17 billion. However, earnings per share came in at $6.18, below the expected $7.22. Daily active people also reached 3.6 billion, slightly short of Wall Street’s estimate of 3.61 billion.
The company projected third-quarter revenue of between $61 billion and $64 billion. The midpoint of $62.5 billion fell below the market consensus of $63.15 billion.
Meta Platforms, however, raised its AI investment plans. The company increased its full-year capital expenditure forecast from $125 billion to $145 billion to a new range of $130 billion to $145 billion. It kept spending on AI infrastructure high while lifting the lower end of the range.




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