Meta Platforms Reports Disappointing Q2 Earnings
Meta Platforms (NASDAQ:META) reported Q2 earnings on Wednesday, revealing a revenue of $60.8 billion, a 28% increase year-over-year. However, net income fell by 14% to $15.8 billion, or $6.18 per share, which missed analysts’ expectations of $7.17 per share. This earnings report was released after market close, leading to a near 9% drop in shares during after-hours trading.
The company’s costs surged by 55% to nearly $42 billion, attributed to increased employee compensation related to artificial intelligence investments, legal charges totaling $2.4 billion, and $1.2 billion in severance costs following layoffs. Capital expenditures also rose by 83% to over $31 billion, with projections for total capex reaching $130 billion to $145 billion by 2026.
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