Meta's free cash flow plunges 91% as AI spending surges

Earnings Impact 4
โดย Reuters·Read original
Summary · why it matters

Meta Platforms reported a 91% drop in free cash flow to $784 million in the second quarter, down from $8.55 billion a year earlier, highlighting the financial strain of its AI buildout. The company now expects 2026 capital expenditure between $130 billion and $145 billion, up from a prior forecast of $125 billion to $145 billion, and raised the lower end of its full-year 2026 total expense outlook to a range of $165 billion to $169 billion, partly due to $2.4 billion in legal charges. Shares fell about 5% in extended trading, echoing a similar reaction to Alphabet's first-ever cash flow negative quarter after it spent $5.9 billion.

Impact on stocks 2

Artificial Intelligence▼ · 2 stocks
Meta Platforms Inc.
META
▼ NegativeCapitalrelevance

Meta's free cash flow plunged 91% and capex guidance raised, causing shares to fall 5%.

Alphabet Inc Class C
GOOG
▼ NegativeCapitalrelevance

Mentioned as comparison: Alphabet also had a cash flow negative quarter due to AI spending, echoing Meta's situation.

Theme Impact 8

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