Meta Platforms' AI Bet: Visionary Leap or Reality Labs Repeat?
Briefly

Meta Platforms reported strong Q2 earnings with $39.1 billion in advertising revenue, representing a 22% year-over-year increase. The net income rose to $13.5 billion, exceeding Wall Street expectations, driven by robust free cash flow of $18.9 billion in H1 2025. The company also raised its capital expenditure guidance to between $66 billion and $72 billion, primarily for AI infrastructure. However, there are concerns regarding heavy reliance on debt for AI expansion, suggesting potential risks despite strong performance in the digital advertising sector.
Meta's Q2 earnings showed $39.1 billion in advertising revenue, a 22% increase, and $18.9 billion in free cash flow, highlighting its strong market position.
The company increased its capital expenditure guidance to between $66 billion and $72 billion, focusing primarily on building AI infrastructure, indicating a strategy shift.
Read at 24/7 Wall St.
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