Meta Platforms Q2 Earnings Report
Meta Platforms (META) reported significant Q2 earnings on Wednesday, delivering earnings per share (EPS) of $7.14, surpassing estimates of $5.89. Revenue reached $47.52 billion, exceeding forecasts of $44.83 billion. Following the announcement, shares rose approximately 8.5%. This marks the company’s eleventh consecutive earnings beat, showcasing its robust growth trajectory.
Advertising Performance
Meta’s advertising segment showed substantial growth, with a 22% year-over-year increase in revenue. Ad impressions grew by 11% year-over-year, and the average price per ad rose 9% year-over-year, reflecting the impact of Meta’s AI optimizations. Despite challenges, Meta’s advertising engine remains strong, as investors remain optimistic about CEO Mark Zuckerberg’s AI strategy.
Future Outlook
Looking ahead, Meta anticipates an acceleration in expense growth linked to capital expenditures (CAPEX), which could negatively impact margins. The company’s ‘Reality Labs’ division reported a loss of $4.5 billion, posing potential challenges. Nevertheless, Meta’s continued investment in AI positions it for future growth, drawing institutional investor interest.
