Meta Platforms Reports Strong Revenue Growth Despite Earnings Miss
Meta Platforms reported strong Q2 revenue growth of 28% year-over-year, reaching $60.8 billion, despite missing EPS expectations due to one-time legal and severance costs. Adjusted for these charges, the company's earnings would have exceeded analyst estimates at $7.35 per share. Advertising revenue rose by 27%, driven in part by AI improvements that enhanced ad targeting and user engagement. However, Meta’s expenses surged by 55% to $42 billion, largely due to increased capital expenditures (capex), which are expected to reach between $130 billion and $145 billion for 2026. The company also reported a loss of $4.6 billion from its Reality Labs division, though it continues investing heavily in the metaverse. Despite these challenges, Meta generated positive free cash flow ($784 million) during Q2 and has produced $13.2 billion through the first half of 2024. The company forecasts Q3 revenue growth between 19% to 25%, with a projected range of $61 billion to $64 billion.
Tickers: $META
Topics: Capital Expenditures Earnings Report Meta