Meta Reports Disappointing Earnings, Stock Drops Nearly 9%
Meta (META) reported second-quarter earnings of $6.18 per share, falling short of the expected $7.19 and causing its stock to drop nearly 9% in morning trading on July 30, 2026. Despite a record revenue of $60.8 billion, costs surged by 55%, driven largely by heavy investments in AI infrastructure as well as legal charges ($2.4 billion) and severance expenses from layoffs earlier this year. Analysts expressed concerns over the company's spending plans and lack of clarity on future returns from its AI initiatives. Goldman Sachs noted that while Meta is making progress with AI compute applications, it has not yet delivered outsized positive results as anticipated. JPMorgan analysts also highlighted a need for more transparency regarding product pipelines and financial outlook. The stock decline marks another setback for Meta, which now trades about one-third below its previous year's highs.
Tickers: $META
Topics: AI spending costs surge layoffs Meta stock decline