Meta's stock is taking a hit after the social media giant posted earnings that missed analysts' estimates.
As Meta Platforms, Inc. (NASDAQ: META) stock wiped out more than $160 billion over the past 24 hours, more than a dozen Wall Street analysts set its 12-month price target on July 30.
Meta is using AI to quickly launch apps, and more are on the way. During this week's second-quarter earnings call, Meta CEO Mark Zuckerberg said the social giant has new apps in the works, following a recent spate of other launches that included an app for Marketplace sellers, one for Facebook Groups, a vibe-coded gaming app, a newphotos app from Instagram, and an experiment involving AI bedtime stories.
I keep hitting the buy button on Meta Platforms (NASDAQ:META | META Price Prediction) because it is the rare AI story where I do not need the AI part to work for the math to work.
Meta's AI expansion strategy drives improvements across advertising, recommendations and enterprise products as it invests in future growth.
Two things happened to Mark Zuckerberg's Meta (NASDAQ: META | META Price Prediction) yesterday.
Meta's spending on AI is ramping, and investors want proof that the company can make serious money in areas other than advertising.
Shares of Meta Platforms (NASDAQ:META | META Price Prediction) are down 9% in early Thursday trading to $530 and change, after Meta's Q2 2026 results released Wednesday after the close failed to calm concerns about the company's ballooning
META delivered 28% YoY revenue growth in Q2 2026, driven by robust ad performance and app engagement. Despite strong top-line results, META's EPS missed by $1.22 due to a 55% YoY surge in expenses, including $1.18B in severance costs. Significant concerns arise from META's ballooning CapEx, narrowing free cash flow, and $420B in off-balance-sheet commitments.
Artificial intelligence has become a spending contest, and every technology giant believes it has no choice but to keep raising the stakes.
India has summoned executives from U.S. tech giant Meta , a senior official said on Thursday, after its Facebook platform briefly restricted a post by Prime Minister Narendra Modi last week.
Meta is rated a buy after a post-earnings sell-off, with the market overreacting to CapEx and cash flow concerns. Q2 earnings missed consensus due to high expenses—$3B stock comp, $2.4B legal, $1.2B severance—despite record $60.8B revenue and strong ad growth. CapEx is rising, compressing free cash flow to $0.8B, but R&D and infrastructure investments are seen as necessary for long-term growth.