Meta shares pop after beating expectations, raising AI spending forecasts
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The news: Meta shares jumped over 10% in after-hours trading after the company beat second-quarter expectations with USD47.5 billion in revenue, up 22% year-on-year.
The numbers: It posted USD18.3 billion in net income and forecast third-quarter sales between USD47.5 billion and USD50.5 billion, with the midpoint above analyst estimates.
The company also raised the lower end of its 2025 capital expenditure forecast to USD66 billion, up from USD64 billion, citing increased investment in AI infrastructure and talent.
During the quarter, CEO Mark Zuckerberg spent USD14.3 billion for a 49% stake in Scale AI and appointed its CEO, Alexandr Wang, to lead the newly restructured Meta Superintelligence Labs.
Amid employee turnover and delayed AI product launches, Zuckerberg has reportedly offered compensation packages worth hundreds of millions, and in one case reportedly USD1 billion, to lure top researchers, according to The Wall Street Journal.
The sources: Meta, The Wall Street Journal
