Meta’s Stock Skyrocket After Exceeding Forecasts
Meta Exceeds Wall Street Forecast with $18.3 B Q2 Net Profit
Meta Technologies posted a Q2 net profit of $18.3 B, up 35 % from $13.5 B in the same period last year. The earnings surpassed analysts’ average estimate of $16 B, largely driven by a 21 % rise in advertising revenue to $46.6 B.
Revenue Growth, User Base, and AI‑Driven CapEx
- Revenue: Q2 revenue climbed 22 % YoY to $47.5 B, reflecting continued demand for Meta’s family of apps.
- User Base: Daily active users reached 3.48 B in June, a 6 % YoY increase across Facebook, Instagram, WhatsApp, and Messenger.
- Capital Expenditures: Meta raised CapEx to $17 B, primarily for AI infrastructure. The company projects total 2025 CapEx between $66 B and $72 B.
AI Investment, “Superintelligence,” and Market Sentiment
Meta’s AI strategy, spearheaded by Alexandr Wang, aims to build a “personal superintelligence” for global users. The AI spend spree mirrors previous VR and metaverse bets, which Meta had lifted when the company rebranded from Facebook to Meta.
Metaverse Segment Losses
- Reality Labs, Meta’s virtual and augmented reality unit, reported a $4.5 B loss on $370 M in revenue, underscoring ongoing challenges in the metaverse business.
Analyst Perspectives and Investor Outlook
- Sonata Insights: Debra Aho Williamson noted that strong results buy Meta more time with investors despite high CapEx.
- Emarketer: Minda Smiley cautioned that a robust quarter does not shield Meta from questions about the company’s AI trajectory and alignment with its broader roadmap.
Meta’s Q2 earnings signal a significant milestone in the company’s AI‑driven transformation, but analysts and investors will monitor the clarity and direction of Meta’s “superintelligence” ambitions moving forward.
