Meta Revenue Hits Record, But AI Costs Drag Stock Price Down
7x24h News
Meta Revenue Hits Record, But AI Costs Drag Stock Price Down
Meta Platforms (META.O) recorded a historic high in revenue for the second fiscal quarter, but the company's update on AI spending plans triggered investor concerns over its infrastructure construction costs. Meta slightly raised the lower end of its annual capital expenditure guidance from $125 billion to $130 billion, while the upper limit remained unchanged at $145 billion. Its second-quarter revenue was $60.8 billion, up 28% year-over-year, but net profit was $15.8 billion, falling short of analyst expectations. As a result, Meta's after-hours stock price dropped more than 6%. To keep pace in the AI race, Meta has invested tens of billions of dollars in chip procurement, data center construction, and recruitment of top talent. Recently, it collaborated with BlackRock to raise at least $12 billion in financing to build a Texas data center. Meta's free cash flow for the second quarter was $784 million. (Jin10)
Navigating Web3 tides with focused insightsTechFlow reports, July 30, Meta Platforms (META.O) second fiscal quarter revenue hit a record high, but the company's update on AI spending plans sparked investor concerns regarding its infrastructure construction costs. Meta slightly raised the lower end of its annual capital expenditure guidance from $125 billion to $130 billion, while the upper limit remained unchanged at $145 billion. Its second quarter revenue was $60.8 billion, up 28% year-over-year, but net profit was $15.8 billion, below analyst expectations.
Affected by this, Meta's after-hours stock price fell more than 6%. To catch up in the AI race, Meta has invested tens of billions of dollars in chip procurement, data center construction, and top talent recruitment, and recently partnered with BlackRock to raise at least $12 billion to build a Texas data center; Meta's second quarter free cash flow was $784 million. (Jin10)
