Meta forecasts lower revenue and stock falls
Meta Platforms company expects its revenues to decline in the third quarter to between $61 billion and $64 billion, below Wall Street's forecast of around $63 billion. This led to a more than 6% drop in its stock price after the market closed. Despite this, the company achieved a 28% growth in advertising revenue in the second quarter, reaching $60.8 billion. However, its net profits declined by 14% to $15.8 billion due to non-recurring items, including legal fees and employee severance costs. Meta continues to make significant investments in artificial intelligence, raising its minimum expected expenditure on AI infrastructure to $130 billion by 2026, amid ongoing competition with major companies like OpenAI and Google.
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