Meta to Report Q2 Earnings Amid AI Investment Scrutiny
Meta (META) is set to report its second-quarter earnings after the market closes on Wednesday, offering investors a closer look at how its significant investments in artificial intelligence are performing. The company has faced growing concerns over CEO Mark Zuckerberg's capital expenditure plans and struggles with stock performance, which have dropped nearly 10% year-to-date and about 16% over the past 12 months. Meta recently announced a $14 billion data center partnership with BlackRock in Texas, where Meta will hold a 20% stake. The company is also exploring new revenue streams by potentially leasing out its AI infrastructure to third parties, inspired by models from SpaceX and CoreWeave. Additionally, Meta launched the Musk Spark 1.1 model at significantly lower pricing than competitors like Anthropic and OpenAI. Analysts expect Q2 earnings per share of $7.14 on revenue of $60.23 billion, with advertising revenue projected to rise by 26% year-over-year despite a sharp increase in capital expenditures.
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