Meta Platforms (META) saw its stock fall nearly 8% post-Q2 FY2026 results, driven by skepticism over escalating AI capex with unclear ROI. Despite robust ad business growth—Advantage+ at a $75B run-rate—expenses surged 55% QoQ due to AI investments and data center costs. Operating income remains flat YoY after adjusting for legal and severance charges, while free cash flow dropped to $784M against $31.9B in operating cash flow.
Indian police have registered a case against the head of Meta India in Hyderabad city for user posts on its Facebook platform that depicted Prime Minister Narendra Modi in an "abusive manner", an official said on Friday.
Q2 2026 wasn't the quarter that propelled Meta Platforms out of the penalty box. While revenue came ahead of estimates, operating earnings fell short due to one-off expenses such as legal and severance-related costs. Just like in 1Q'26, Meta's Family of Apps' incremental revenue was ~41% higher than Google Search revenue.
Meta Platforms' Q2 revenues rise 28% on strong ad demand and AI-driven engagement, but surging costs drag earnings below estimates.
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) shares fell as much as 10% on Thursday morning after the company's third-quarter results left investors unconvinced that its massive artificial intelligence spending is translating into tangible returns. Earnings per share came in at $6.18, well below the $7.22 analysts had expected, even as revenue of $60.8 billion topped forecasts of $60.17 billion.
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.