Meta’s AI Push Triggers Selloff as Earnings Miss Wipes Billions from Zuckerberg’s Stake
TL;DR Summary
Meta Platforms posted Q2 revenue of $60.8B, beating estimates, but EPS of $6.18 missed consensus $7.22 as costs jumped 55% to $42.03B and free cash flow collapsed 91% to $784M. The company raised full-year capex guidance to $130-145B to fund AI infrastructure, lifting total expenses to $165-169B and fueling investor skepticism about the AI gamble. Shares slid in after-hours trading, wiping about $15B off Mark Zuckerberg's stake given his roughly 13% ownership, even as advertising revenue rose 27% and the core business remained healthy.
- Zuckerberg Loses $15 Billion As Meta Shares Plunge Following Earnings Disappointment 24/7 Wall St.
- Meta misses on Q2 earnings, stock tumbles Yahoo Finance
- Meta's stock drops on disappointing guidance, dwindling free cash flow cnbc.com
- Meta’s Profit Falls 14 Percent as A.I. Spending Continues The New York Times
- Meta’s Free Cash Flow Dwindles to Lowest in Nearly Four Years Bloomberg
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