Meta’s stock drops on light revenue guidance, dwindling free cash flow
Meta said legal and severance charges lifted expenses 55% as shares fell 4.2% after it forecast revenue below analyst estimates.
- On Wednesday, Meta Platforms reported revenue grew 28% to $60.8 billion for the April-June period, though profit fell 14% to $15.85 billion, or $6.18 per share, missing Wall Street expectations.
- Total expenses surged 55% to $42.03 billion, driven by $2.40 billion in legal charges and $1.18 billion in severance costs for roughly 8,000 workers laid off in May.
- The Menlo Park, California-based company saw daily active users on its "family of apps"—Facebook, Messenger, Instagram, and WhatsApp—grow 3% from a year earlier to 3.6 billion.
- Meta shares fell $24.76, or 4.2%, to $560.85 in after-hours trading, as investors responded to the profit decline and rising operational costs.
- For the current quarter, Meta forecasts revenue between $61 billion and $64 billion, below the $63.14 billion Analysts expected, though CEO Mark Zuckerberg stated AI is "accelerating our core business.
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27 Articles
Last year, the Facebook group Meta invests a good 72 billion dollars in AI infrastructure. This year, spending will double. For investors, too much of a good thing: they throw meta shares out of the depots despite record sales.
The Key Takeaways From Meta's Earnings and Lackluster Forecast
Ygal Arounian, Wedbush managing director, Internet equity research, reacts to Meta Platforms Inc.'s second-quarter earnings and disappointing earnings forecast on "Bloomberg The Close." (Source: Bloomberg)
Meta shares fall almost five percent after results. Expenses for expanding artificial intelligence are a concern.
The Facebook Group's sales fell short of Wall Street's expectations in the past quarter. The share is considerably decreasing after exchange.
Meta Stock Tanks In Jittery Market On Massive AI Investment, Mixed Q2
Meta shares plunged more than 8% in the after market as it said it plans to invest between $130 billion and $145 billion on AI this year. The parent of Facebook, Instagram and WhatsApp also missed Wall Street’s Q2 earnings per share forecast and anticipated softer than expected revenue in the current third quarter. Revenue […]
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