SAN FRANCISCO: Meta delivered stronger-than-expected second quarter results, sending its share price soaring 12% in after-hours trading as the tech giant’s heavy AI investments showed early returns.
The company reported $47.5 billion in revenue, a 22% year-over-year increase, with net profit climbing to $18.3 billion from $13.5 billion.
“We’ve had a strong quarter both in terms of our business and community,“ said CEO Mark Zuckerberg.
“I’m excited to build personal superintelligence for everyone in the world.” Advertising revenue grew 21% to $46.6 billion, while daily active users across Meta’s platforms reached 3.48 billion in June, up 6% annually.
The results came despite massive capital expenditures of $17 billion this quarter, primarily for AI infrastructure.
Meta projects total 2025 spending between $66 billion and $72 billion as it competes aggressively in the AI race.
Zuckerberg has been recruiting top AI talent from rivals like OpenAI and Apple, offering premium compensation packages.
“To win the superintelligence race requires the best of the best talent and Meta’s been on a roll when it comes to recruiting top AI talent.
Money talks and Meta has plenty of it,“ said Forrester research director Mike Proulx.
However, Meta’s Reality Labs division continued struggling, losing $4.5 billion on just $370 million in revenue.
Some analysts questioned whether the current AI spending spree might mirror the company’s costly metaverse pivot.
“Capital expenditures are still shockingly high, but with these strong results, Meta has bought itself more time with investors,“ noted Debra Aho Williamson of Sonata Insights.
Zuckerberg remains bullish, stating superintelligence is now “in sight” and emphasizing Meta’s unique ability to scale AI to billions of users. - AFP
