Meta shares sink after weak forecast and $130B-$145B AI spend
What's new: Free cash flow fell to $784 million from $8.55 billion a year earlier as Meta kept pouring money into AI infrastructure.
Meta Platforms reported second-quarter revenue of $60.8 billion, topping analyst estimates, but its stock slid in after-hours trading after the company forecast a softer current quarter and kept spending heavily on AI. Meta projected third-quarter revenue of $61 billion to $64 billion, with a midpoint below Wall Street expectations. Earnings per share came in at $6.18, missing estimates, and daily active people reached 3.6 billion, also slightly below forecasts. The company narrowed its full-year capital expenditure outlook to $130 billion to $145 billion, raising the low end of the range. Free cash flow dropped sharply to $784 million from $8.55 billion a year earlier as Meta funded data centers, including a $14 billion project in El Paso, Texas.