Meta’s Stock Rockets 8% After Explosive Q2 Earnings and Bold AI Investments
Meta Platforms (META) saw a significant stock rally early Thursday due to impressive Q2 earnings, showcasing robust growth in its advertising business.
– The company's revenue for the quarter ending in June surged 22% year-over-year to $39.07 billion, exceeding the $38.26 billion forecasted by analysts.– –
– Earnings per share reached $5.16, a 73% increase from the previous year, surpassing the $4.72 per share estimate by analysts.– –
– For the upcoming quarter, Meta projects revenue between $38.5 billion and $41 billion, slightly above the $39.1 billion forecast.– –
– CEO Mark Zuckerberg highlighted Meta AI's goal to become the most utilized AI assistant globally by year's end, noting advancements in AI models and Ray-Ban Meta AI glasses.– –
– Meta's stock price jumped over 8% to $516.14 in premarket trading, reflecting positive investor sentiment following the earnings report.– –
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– The company reported a 10% increase in ad impressions and average ad prices, contributing to a net income of $13.47 billion, up 73% year-over-year.– –
– Meta plans substantial investments in datacenter capacity to support its AI ambitions, with 2024 capital expenditures expected between $37 billion and $40 billion.–
– Despite significant AI spending concerns, analysts are optimistic about Meta's long-term AI strategy and its potential impact on advertising efficiency.– –
1. The earnings report helped Meta recover from a 6% decline in July, with stock performance improving despite broader market volatility and concerns over AI costs.