"The stock is up 30% year to date, outperforming the Nasdaq Composite's roughly 13% return, supported by strong revenue and profit growth. Revenue grew 22% year over year in the second quarter, with adjusted earnings per share surging 38%. Meta's AI is making it easier to show people content that grabs their interest, and therefore, generate more ad revenue. Meta's profitable ad business provides plenty of resources to advance its technology advantage."
"The company plans to spend between $66 billion and $72 billion this year on infrastructure. This includes investments to expand its AI capacity, including its multigigawatt Prometheus and Hyperion data centers. "Meta has all of the ingredients that are required to build leading models and deliver them to billions of people," CEO Mark Zuckerberg said on the company's Q2 earnings call. The opportunities are so significant that Meta has no plans to pull back the reins on capital spending."
Investing in the biggest, most profitable tech companies is a low-risk strategy because these firms have massive user bases, large cash reserves, and growing AI investments that can drive shareholder returns. Meta Platforms has over 3.4 billion daily users across Facebook, Instagram, WhatsApp and other services, generating substantial advertising revenue that funds technology investment. Meta's stock has risen about 30% year to date, with second-quarter revenue up 22% year over year and adjusted EPS up 38%. The company plans $66–$72 billion in infrastructure spending this year to expand AI capacity with multigigawatt data centers. Analysts expect roughly 17% annualized earnings growth over coming years.
Read at The Motley Fool
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