Meta Platforms shares fell as the company increased its artificial intelligence spending plans despite reporting double-digit revenue growth.
Meta Platforms shares fell approximately 10% on Thursday morning following the reporting of second-quarter results. While the company reported a revenue of $61 billion, representing a 28% increase from the previous year, net income declined to $6 billion. The administration announced that Meta Platforms will increase its 2026 capital expenditure forecast to a range of $130 billion to $145 billion to support expanding artificial intelligence infrastructure. This increased spending is driving a decline in free cash flow, which fell to $784 million from $8.55 billion a year earlier. Investors expressed concern regarding the pace of spending and the timeline for generating returns on these investments. However, Finance Chief Susan Li noted that excluding specific charges, operating income increased by 9% year over year. The company continues to invest heavily in data centers and AI models to improve advertising capabilities and drive engagement across its core platforms.