Meta Misses Q2 Earnings, Stock Drops Nearly 8%
Meta (META) reported second-quarter earnings that missed expectations due to legal contingencies and severance expenses. The company earned $6.18 per share on revenue of $60.8 billion, below the anticipated EPS of $7.14 but slightly above expected revenue. Meta also provided a Q3 revenue outlook between $61 billion and $64 billion, missing Wall Street's midpoint forecast. Despite beating ad revenue expectations by nearly $250 million, investors reacted negatively to the earnings miss and revised capital expenditure guidance, sending shares down almost 8% after hours. Meta announced plans for a new data center in Texas with BlackRock (BLK), where it will hold a 20% stake. The company is also exploring ways to monetize its AI infrastructure by potentially leasing out capacity or following models like SpaceX and CoreWeave. Additionally, Meta launched the Musk Spark 1.1 model at aggressive pricing rates that undercut competitors such as Anthropic (ANTH.PVT) and Google (GOOG). This strategy could help it gain market share in a competitive AI landscape. The stock's sharp decline highlights investor concerns over Meta’s short-term performance despite long-term strategic moves into the AI sector.
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Topics: Meta Q2 earnings miss stock price drop