Meta Shares Drop Nearly 10% After Earnings Miss, Costing Zuckerberg $15 Billion
Meta Platforms (NASDAQ:META) shares fell nearly 10% in after-hours trading following a disappointing Q2 earnings report. The stock closed down 7.45%, wiping an estimated $15 billion from CEO Mark Zuckerberg's stake due to the decline in market value. While Meta beat revenue expectations, it missed on diluted EPS by 14%. Costs surged 55% year-over-year, driven largely by legal charges and severance costs related to a workforce reduction. Investors were particularly rattled by an increase in full-year capital expenditure guidance for AI infrastructure, which is now expected between $130 billion and $145 billion. Total expenses also rose sharply, with free cash flow collapsing 91% year-over-year. Despite strong advertising revenue growth of 27%, the company's aggressive spending on AI raised concerns about its financial sustainability. Zuckerberg defended Meta’s investment in artificial intelligence during a call with investors and emphasized long-term opportunities despite short-term skepticism.
Tickers: $META
Topics: CEO Wealth Impact Earnings Report Meta Stock Price Drop