Meta’s AI investments spark investor concern as costs rise

Meta Platforms reported Q2 revenue of $61 billion (up 28% year over year) while net income declined 14% to $6 billion. The company raised its 2026 capital expenditure forecast to $130–$145 billion to scale AI infrastructure, models, data centers, and AI-powered products, signaling expectations of future returns from AI tools and APIs. However, free cash flow fell to $784 million—the lowest in about five years—due to higher infrastructure costs, prompting investor concern about the pace and timeline of AI-driven gains as the stock traded lower.