Meta’s Strategic Investments in AI Drive Earnings Growth

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Meta Reports Strong Q2 2025 Earnings

Meta Platforms (NASDAQ: META) reported a significant increase in Q2 2025, exceeding analyst forecasts. Revenue rose 22% year-over-year to $47.5 billion, while earnings per share surged 38% to $7.14. The number of daily active users also increased by 6% to 3.48 billion, with advertising revenue benefiting from a rise in ad impressions (up 11%) and average ad prices (up 9%).

Investment in AI and Capital Expenditures

The company spent over $17 billion on capital expenditures during the quarter, a 101% increase from the previous year. For 2025, Meta plans to invest between $64 billion and $72 billion in capital expenditures to enhance its AI capabilities. Despite the increased spending, free cash flow in Q2 was $8.55 billion, a 22% decline year-over-year.

Market Reaction and Future Outlook

Following the earnings announcement, Meta’s shares rose about 9% in after-hours trading, reflecting investor optimism regarding the company’s strong results and AI investments. Looking ahead, Meta expects Q3 revenue between $47.5 billion and $50.5 billion, with total expenses projected to increase by 20% to 24% in 2025.

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